REPSP - PEAC _ Eng.pdfDSPER anglais_JC.indd 1 04/11/2015 16:21 AC Central Africa Power Pool Regional...

REPSP - PEACCentral Africa Power Pool

Regional Energy Policy Strategy Paper

Central Africa Power Pool

This project is funded by the European Union.

Chad (SNE)

Central African Republic (ENERCA)

Democratic Republic of

Congo (SNEL)

Gabon (SEEG)

Congo

(SNE)

Camero

on

(ENEO

)

Burundi (REGIDESO)

Angola (ENE-EP, EDEL)

Sao Tome & Principe

(EMAE)

Equatorial Guinea

(SEGESA)

DSPER anglais_JC.indd 1 04/11/2015 16:21

2R E P S P - PEAC Central Africa Power Pool Regional Energy Policy Strategy Paper

R E P S P Central Africa Power Pool

Regional Energy PolicyStrategy Paper

This report was written by IED under the contract for the mission to provide technical assistance to build the capacities of the Central Africa

Power Pool (CAPP) and based on discussions with people met. It does not necessarily reflect the opinions of the European Union Delegation

in Congo or of the Permanent Secretariat of the Central Africa Power Pool (CAPP).

InnovationEnergieDéveloppement


3 R E P S P - PEAC Central Africa Power Pool Regional Energy Policy Strategy Paper

PREFACE

The Central Africa Power Pool (CAPP) now possesses an indispensable planning and implementation tool for achieving its medium and long term objectives in its Regional Energy Policy Strategy Paper (REPSP) 2014-2030.

This is the culmination of a decade of study and research on the ways and means to fulfil its mandate and improve the way it interacts and conducts discussion and dialogue with sector donors.

We would hereby like to thank the Commission of the European Union for funding the development of the REPSP as part of the second phase of the European Union’s Technical Assistance Mission to the CAPP (TAM2) and more generally for its unwavering technical and financial support to develop power supply interconnections among the CAPP member states and to provide electricity to the people living in villages along common borders.

The CAPP REPSP, which encompasses technical, legal, institutional and financial provisions pertaining to the central issue of this specialised agency’s governance, constitutes the strategic and operational framework for setting the priorities and approaches to implement regional energy policy through these interconnected systems.

This key document thus marks an important moment in the movement initiated by the Permanent Secretariat since the creation of the CAPP in 2003, to develop tools and programmes aiming at the maximisation of joint actions to construct the cross-border power lines and interconnected grids that make up the indispensable links in the chain of regional and inter-regional integration, but also to provide an electricity supply without which no meaningful development would be either economically possible or sustainable.

Jean-Chrysostome MEKONDONGO Permanent Secretary of the CAPP

Head of Diplomatic Mission



Table des Matières

1 Executive Summary ....................................................................................................................................11

1.1 Context ...................................................................................................................................................... 12

1.2 The CAPP: Role and Institutional Mechanism ............................................................................................ 12

1.3 REPSP: Document de Stratégie de Politique Énergétique Régionale ............................................................ 13

1.3.1 Definition and Scope of REPSP ..................................................................................................................... 13

1.3.2 REPSP Strategic Objectives and Priorities .................................................................................................... 13

1.4 Reaching the Ultimate Objective of the REPSP ........................................................................................... 15

1.5 The Current Situation, ECCAS Member State Regional Infrastructure Extention and the Key Role of the CAPP ... 15

1.6 Regtional Energy Policy - Action Plan and Implementation Strategy ........................................................... 16

2 Regional Context .........................................................................................................................................18

2.1 Political Context ........................................................................................................................................ 19

2.1.1 Energy as a Key Element in Regional Development Policy ........................................................................... 19

2.1.2 Universal Access to Modern Energy Services and Economic and Social Development ................................ 20

2.1.3 Other Regional Initiatives in the Energy Sector ............................................................................................ 21

2.2 The ECCAS Agency Responsible for Energy Policy Development and Implementation: CAPP ....................... 21

2.2.1 Role of the CAPP .......................................................................................................................................... 21

2.2.2 CCAP Institutional Mechanism ..................................................................................................................... 22

2.3 PESTLE Analysis of the CAPP ...................................................................................................................... 24

2.3.1 Justification ................................................................................................................................................... 24

2.3.2 CCAP Factors and Impacts ........................................................................................................................... 24

3 Why a Regional Energy Policy Strategy? ..............................................................................................27

3.1 The Regional Energy Policy Strategy Paper (REPSP) ..................................................................................... 29

3.1.1 Objectives of the REPSP ................................................................................................................................ 29

3.1.2 Strategy Paper Development ........................................................................................................................ 29

3.1.3 Scope of the REPSP ............................................................................................................................... 30

3.2 Central Africa Energy Policy – Objectives and Expected Results .................................................................. 30

3.2.1 Ultimate Objective ........................................................................................................................................ 31

3.2.2 Specific Objectives ........................................................................................................................................ 31

3.3 Prioritisation of Strategic Objectives ........................................................................................................... 33



3.4 Resources for Achieving the Ultimate Objective of the ECCAS Member Countries’ Energy Policy ................ 35

3.4.1 Grid Interconnections in the ECCAS Member Countries .............................................................................. 35

3.4.2 Priority Integration Projects – (PIP) .............................................................................................................. 37

3.4.3 Complementarity between “intraregional” and “interregional” PIP ............................................................ 40

3.4.4 Cross-Border Electrification Programme Projects (CBEP) ............................................................................. 43

3.5 The Current Situation of ECCAS Member State Regional Infrastructure Extensions ..................................... 44

3.5.1 The Role of the CAPP in Extending Regional Infrastructure in the Medium Term: 2014 - 2019 ................... 44

3.5.2 The Role of the CAPP in Establishing the Regional Electricity Market: 2020 - 2030 ..................................... 48

4 Regional Market Infrastructure Implementation Strategy ..........................................................51

4.1 Context ...................................................................................................................................................... 52

4.2 Analysis of the Situation of the 15 Priority Integration Projects ...................................................................... 52

4.2.1 Signature of Inter-Country Protocols ............................................................................................................ 53

4.2.2 Uncertainty around the Alignment of Transmission Projects and Generating Projects................................ 54

4.2.3 Operating Mode Adopted to Monitor and Implement PIPs ......................................................................... 55

4.2.4 Low Capacity of National Power Utilities to Self-finance .............................................................................. 54

4.2.5 Insufficient Human Resources within the CAPP to Adequately Monitor and Implement Complex Projects like the PIPs. ........................................................................................................................................................ 56

4.3 The Suggested Implementation Strategy .......................................................................................................... 57

4.4 Overall Recommended Framework for CAPP Operation to Establish the Regional Market ............................ 58

4.4.1 Language Harmonisation: terms and concepts ............................................................................................ 58

4.4.2 Recommended Framework for CAPP ........................................................................................................... 59

5 Strategy for Implementing an Organised Electricity Trading Market .......................................61

5.1 Context: the Characteristics of a Regional Market ....................................................................................... 62

5.2 The Current Status of the Central Africa Regional Market ........................................................................... 62

5.2.1 The Institutional Framework ........................................................................................................................ 63

5.2.2 The Requirements Relating to National Regulations .................................................................................... 63

5.2.3 Regional Standards ....................................................................................................................................... 64

5.2.4 Infrastructure Development ......................................................................................................................... 64

5.3 The Target Situation ................................................................................................................................... 64

5.3.1 Setting up of a Regional Market in the Medium Term: Phase 1 ................................................................... 64

5.3.2 Setting up of a Regional Market in the Long Term: Phase 2 ......................................................................... 65

5.4 Transition from the Current Situation to the Regional Market Target Situation ........................................... 66



5.4.1 Phase 1: 2014 - 2019 .................................................................................................................................... 66

5.4.2 Phase 2: 2020 - 2030 .................................................................................................................................... 67

6 CAPP Action Plan for the Regional Energy Policy Strategy ...........................................................68

6.6.1 The Fundamental Issue of CAPP Resources ........................................................................................... 69

6.1.1 Financial Resources ...................................................................................................................................... 69

6.1.2 Human Resources ......................................................................................................................................... 70

6.2 The Risk Matrix and the SWOT Analysis ...................................................................................................... 71

6.2.1 The Risk Matrix ............................................................................................................................................. 71

6.2.2 SWOT Analysis .............................................................................................................................................. 72

6.3 The Action Plan .......................................................................................................................................... 73

6.3.1 Phase 1: 2014 - 2019 .................................................................................................................................... 73

6.3.2 Phase 2: 2020 - 2030 .................................................................................................................................... 79

7 Appendix: PIP List and Costs nnexe .....................................................................................................85



Figures and Tables

Figure 1: CAPP Organogram ...................................................................................................................................... 18

Figure 2: Existing high voltage networks in CAPP ...................................................................................................... 42

Figure 3: National Projects of Member Countries and PIP to 2019 ........................................................................... 47

Figure 4: National Projects of Member States and PIP to 2030 ................................................................................ 50

Table 1: Strategic Objective Prioritisation Matrix ...................................................................................................... 34Table 2: Indicative duration of the implementation stages of an infrastructure project ........................................... 37Table 3: Overview of implementation durations for the 15 PIP of the CAPP ............................................................ 38Table 4: Current progress on CAPP CEPP ................................................................................................................... 43Table 5: Progress of the 15 PIP during the 2014 – 2019 period ................................................................................ 46Table 6: Progress on the 15 PIP over the 2020 – 2030 period ................................................................................... 49Table 7: Comparative analysis of project companies and international organisations .............................................. 58Table 8: Strategy Implementation Risk Matrix .......................................................................................................... 72Table 9: CAPP SWOT Analysis .................................................................................................................................... 72



Abbreviations and Acronyms

AfDB African Development BankAPUA Association of Power Utilities in Africa (former UPDEA)

AU Africa Union

BDEACBanque de Développement des États de l'Afrique Centrale / Central African States Development Bank

CAPP Central Africa Power PoolCBEP Cross-border Electrification Project

CEDEAO/ECOWASCommunauté Économique des États de l'Afrique de l'Ouest / Economic Community of West African States

CEEAC/ECCASCommunauté Économique des États de l'Afrique Centrale / Economic Community of Central African States

CEMAC/CAEMU Communauté Économique et Monétaire de l'Afrique Centrale / Central African Eco-nomic and Monetary Union

CEN-SAD Community of Sahel-Saharan States / Communauté des États Sahélo-sahariens

CEPGLCommunauté Économique des Pays des Grands Lacs / Economic Community of Great Lakes Countries

COMESA Common Market for Eastern and Southern Africa

CORREACCommission Régionale de Régulation de l'Électricité de l'Afrique Centrale / Regional Commission for Electricity Regulation in Central Africa

EAC East African CommunityEGL / GLE Électricité des Grands Lacs / Great Lakes Electricity

IGAD Intergovernmental Authority on DevelopmentNEPAD New Partnership for Africa's Development

OHADAOrganisation pour l'Harmonisation du Droit des Affaires en Afrique / Organisation for the harmonisation of business law in Africa

PIDA Programme for Infrastructure Development in AfricaPPA Power Purchase Agreement

QHSE Quality, Hygiene, Security, EnvironmentREC Regional Economic CommunityREP Regional Economic Programme

REPSP Regional Energy Policy Strategy PaperSA Société Anonyme

SADC Southern Africa Development Council

SEI-ACSystèmes Électriques Interconnectés de l'Afrique Centrale / Interconnected Electrical Systems of Central Africa

SIEPACSystème d'Interconnexion Électrique des Pays d'Amérique Centrale / Electricity Inter-connection System of Central American Countries

SINELAC Société Internationale d'Electricite des Pays des Grands Lacs / International Electri-city Company of the Great Lakes Countries

UMA Union du Maghreb Arabe UPDEA Union of Producers and Distributers of Electricity in AfricaUSAID United States Agency for International DevelopmentWAPP West African Power Pool



List of Experts at the REPSP Validation Workshop Yaoundé (Cameroon) from 4 to 7 November 2014

Burundi Hakizimana Godefroy MEMCameroon Ngoune Tagny Maurice MINEECameroon Akoulouze Adèle MINEPATCameroon Njoya Njikam ARSELCameroon Bouba Oumarou Ahmadou ARSELCameroon Ngueha Eugène ENEOCameroon Nkue Valery MINEECameroon Mahound Ndomb Oum Nyobe AERCameroon Ndimba Grégoire MINEECameroon Begoumenie Jean D. ARSELCameroon Tarh Z. Tongabiang MINEECameroon Lea Laouan Marino MINEECameroon Kedi Jean-Pierre ARSELCameroon Bouayekon F. Miller MINEECameroon Asanji Nelson C. MINEECameroon Djong Cristian MINEECongo Opangault Émile DG ARSELCongo Mossongo Cyriac Abdon SNEGabon Diangatebe Malongo Sylvain SEEGEquatorial Guinea Francisco-J Onana Mangue MMIEEquatorial Guinea Amugu Akumu Gabriel SEGESAEquatorial Guinea Edu Ndong Eugenio MMIECAR Songuele Moningue Louis-Marie ENERCACAR Ngaïssona Bienvenu DGE / MMRHDRC Felo Babala Elvis SNELDRC Mumaka Mbulu Norbert MRHESao Tome & Principe Helder Paquette Lima MEChad Mignede Modingam MEPChad Ngamada Abdoulaye SNECAPP Mavoula Pascal CAPP



EXECUTIVE SUMMARY 1



1 Executive Summary

1.1 Context

Regional integration is one of the fundamental objectives underlying the formulation and implementation of Central African countries’ development policies. This is particularly the case as regards promoting the region’s enormous energy potential and hence, the substantial development in quantity and quality of power supply for both the general population and the many industrial projects awaiting development.

It is therefore hardly surprising that the ECCAS vision for 2025 explicitly defines energy as one of the priority sectors for developing and achieving regional integration. This vision includes strengthening power generating infrastructure as well as stepping up cross-border electricity trade through the development of grid interconnections. The ultimate aim of this process is to facilitate the emergence of a reliable regional electricity supply, at competitive prices.

It is to translate this vision into reality that the ten ECCAS member states created the Central Africa Power Pool in 2003, as this institution’s specialised agency responsible for power pooling.

1.2 The CAPP: Role and Institutional Mechanism

As a specialised agency of the ECCAS, the role of the CAPP as stipulated in its founding texts is to contribute to building a regional electricity market able to meet the electricity needs of both industry and the people. The CAPP is thereby responsible for expanding regional infrastructure and for defining the commercial, legal and technical conditions necessary to encourage investment and power pooling amongst all Central African countries.

To fulfil this mandate, the institutional structure of the CAPP is based on two membership categories: ECCAS member countries and national power utilities through, respectively, an inter-governmental framework agreement and an inter-utility agreement.

The highest decision-making body of the ECCAS is the Conference of Heads of State and Government, which meets at the behest of the Council of Ministers for Foreign Affairs of the member states. The CAPP sits just below these ECCAS deliberative structures and is organised in four levels:

nnnn The Council of Ministers for Energy of the member states

nnnn The Executive Committee, made up of general directors or general secretaries of the Ministries of Energy

nnnn The Management Committee, which consists of the managing directors or CEOs of the power utilities, whose meetings are prepared by a committee of experts

nnnn The Permanent Secretariat

With this set-up the technical expertise required to accomplish the missions of the CAPP sits outside the Permanent Secretariat, within the national power utilities which means that:

nnnn There is a shortage of technical expertise within the operational structures of the CAPP. This constitutes a major



disadvantage when it comes to contributing to and/or supervising the development of interconnection projects which involve, by their very nature, complex technical infrastructure.

nnnn The Permanent Secretariat is currently completely lacking in the technical expertise that the technical sub-committees, as yet non-operational, are supposed to provide

This has been corroborated by the analysis of the expected impacts of the Political, Economic, Social, Technological, Legal and Environmental (PESTLE) factors carried out as part of the process to design and develop the Regional Energy Policy Strategy Paper (REPSP).

1.3 REPSP: Regional Energy Policy Strategy Paper

A review of the regional context followed by a review of the national contexts within the ten ECCAS member states highlights the political commitment within the region to a strong and ambitious regional energy policy. This stated commitment contrasts starkly however with the considerable delays noted in (i) the physical construction of power generating and transmission infrastructure and in (ii) the establishment of a regional electricity market.

This is despite the region undertaking several actions to implement its policy since 2005: the formulation of a master plan, the identification of priority projects, progress in the development of some of these projects, the passing of a Central African electricity market law, advanced reflection on a power generation operating law etc.

1.3.1 Definition and Scope of the REPSP

All these actions have led to the development of the REPSP which, between 2014 and 2030, aims to:

i. Firstly identify the actions required to establish a regional electricity market

ii. Secondly define the strategy for setting up the legal, IT and technical tools to plan, manage and monitor the future regional electricity market

The REPSP “specifies the strategic framework that will be used to support regional integration of the electricity market for ECCAS member states and the development of regional infrastructure, power trade and the development of wide-spread access to a modern, available and affordable power supply”.

1.3.2 REPSP Strategic Objectives and Priorities

Five strategic objectives corresponding to what the institution is seeking to accomplish have been adopted to reach the ultimate objective:

nnnn Ultimate objective: To establish a regional market that guarantees a reliable, affordable and environmentally-friendly power supply to ECCAS member states,

nnnn Specific Objective 1: To provide assistance for power generating and transmission infrastructure in Central Africa,

nnnn Specific Objective 2: To develop a legal and regulatory environment conducive to the development of a regional electricity market in Central Africa,



nnnn Specific Objective 3: To establish trade rules and set up a regional operator,

nnnn Specific Objective 4: To establish and interpret technical rules for operating, managing and pricing power trade,

nnnn Specific Objective 5: To facilitate institutional capacity building and skills consolidation.

These strategic objectives are fully in line with the mission and mandate accorded by the ECCAS to the CAPP as regards the 2014-2030 energy policy. They have set their priorities according to an equal weighting of two factors:

nnnn The urgency of implementing the specific objective in order to achieve the ultimate objective, and

nnnn The importance of the specific objective in the strategy implementation process.

This process gave rise to three levels of priority for the strategic objectives:

i. “CRITICAL”

ii. “VERY HIGH”

iii. “HIGH”

Piority Level No. Strategic Objective

CRITICAL

1 To provide assistance for power generating and transmission infrastructure in Central Africa (PIP, CBEP and all other integrational projects)

2 To facilitate institutional capacity building and skills consolidation to supervise and manage the regional electricity market.

VERY HIGH 3 To developp a legal and regulatory environment conducive to the development of a regional electricity market in Central Africa.

HIGH

4 To establish trade rules and set up a framework and regional operator responsible for economic and financial regulation.

5 To establish and interpret technical rules for operating, managing and pricing cross-border power trade.



1.4 Reaching the Ultimate Objective of the REPSP

The results of the ECCAS member states electricity system interconnection feasibility study, carried out in the ten ECCAS member states date from 2010 and serve as a reference for developing grid interconnections in Central Africa. The study constitutes the general framework for increasing interconnections and building a regional electricity market.

In 2004 in Malabo, the ECCAS Council of Ministers officially adopted regional power generating and transmission infrastructure development as one of the priorities for increasing trade through:

i. 15 Priority Integration Projects (PIP),

These are at the heart of the development of a regional electricity market. They focus on constructing additional power generating infrastructure and high-voltage transmission networks which will take advantage of the enormous hydroelectric potential in the region and will facilitate the distribution of the new supply capacity developed by member states.

ii. 15 Cross-Border Electrification Projects (CBEP).

These concern rural projects involving at least two member states. In theory they do not require the construction of new power generating infrastructure or high-voltage power lines.

1.5 The Current Situation, ECCAS Member State Regional Infrastructure Extension and the Key Role of the CAPP

The current reality of regional power supply in Central Africa is that the market is still nascent and electricity is not yet really traded.

This situation has led to the suggestion that regional infrastructure should be extended in two stages:

i. In the short to medium term, from 2014 to 2019, when the priority is mobilising financing. Indeed almost all the infrastructure required to pool generating capacity and to increase grid interconnections is either in the design phase or under construction. The analyses carried out highlight that none of the PIP will come on line until after 2019 and,

ii. In the long-term, from 2020 to 2030, when all the PIP will gradually enter the operating phase. During this period the conditions for establishing and running a regional market will be met.

The role of the CAPP during both these regional market development stages is absolutely crucial and requires the specific developments described in this document:

i. From 2014 – 2019, the CAPP must fully assume the role of Programme Manager, and focus on mobilising the financing required to construct the infrastructure needed to pool power generating capacity and to increase grid interconnections.

It will then be able to take charge of:



nnnn Preparing the harmonisation of national legislation and regional regulations,

nnnn Contributing to improving the regulatory and economic environment to attract private sector investment, and

nnnn Preparing to meet the conditions to ensure the technical regulation of regional power trade which will increase over time.

ii. The period from 2020 to 2030 will be marked by a gradual commissioning of all infrastructure from 2020 to 2024. At this stage, as trade increases, the CAPP Permanent Secretariat will focus on ensuring the conditions are met to manage and supervise the electricity market. Even if they are still relevant, considerations relating to infrastructure development will begin to take a back seat during this period as considerations regarding operational planning for regional market development, setting rates for wheeling and associated services and the regulation of operators come to the fore.

The overall framework for CAPP operations as it builds a regional market has been reviewed and the suggested implementation strategy is described and clearly emphasises the need for the CAPP to have the necessary human and financial resources at its disposal to be able to assume the role of Project Manager on the regional level on behalf of the member states.

1.6 Regional Energy Policy – Action Plan and Implementation Strategy

The REPSP concludes with an action plan. The aim of the action plan is to outline a range of activities that act as a strategic plan the CAPP can implement to cover the two fundamental aspects of the ECCAS energy policy:

nnnn Play a key role in meeting the conditions for implementing regional infrastructure projects,

nnnn Lead the harmonious development of the regional market so that it is effective and complies with the objective of developing cross-border trade and providing industrial investors and the general public with a reliable and affordable supply of electricity.

To conclude, the CAPP has operated since its creation in 2003 with no real strategic plan. The moment has come for this institution to get organised so it may fulfil its mandate on the basis of strategic objectives stemming from the expected results of its activities. This is the scope of the REPSP.



REGIONAL CONTEXT2



2 Contexte régional

2.1 Political Context

2.1.1 Energy as a Key Element in Regional Development Policy

Regional integration is one of the underlying objectives of the Central African countries’ development policies. This notion is at the heart of almost all treaties and agreements signed by the countries of one or other of the two Regional Economic Communities in that area: the Economic Community of Central African States1 (CEEAC), and the Central African Economic and Monetary Union2 (CAEMU). The visions of the two institutions converge, particularly as regards promoting the region’s enormous energy potential and hence supplying electricity to the people and the numerous industrial projects on the drawing board.

The ECCAS strategic vision to 2025 sets electricity as one of the priority areas for developing and implementing regional integration. The 13th ECCAS Conference of Heads of State and Government held on 30 October 2007 in Brazzaville, Congo, endorsed the fact that this sector will shape to a large degree the effective emergence of a single Central African market. Thus, Strategic Focus Point 15 of the ECCAS 2025 Strategic Vision Document explicitly concerns “the building of power generating capacities and the development of grid interconnections”.

In the case of CAEMU, the policy document drafted on the basis of the 2025 Vision: the Regional Economic Programme (REP 2009-2015) clearly stipulates that regional power is a prerequisite for the economic development of the six member countries to 2035. In other words, electricity generation constitutes one of the pillars for achieving this objective and this includes promoting the hydroelectric potential manifest in the objective of an installed capacity of 25,000MW by 2025.

The objectives of the two regional economic communities thus centre on the promotion of the development and well-being of the people and their member countries. Harmonising their programmes will help optimise resource use with a view to establishing a single Central African market.

This harmonisation is all the more crucial in that the ECCAS has been recognised by the deliberative bodies of the Africa Union (AU) as the reference Regional Economic Community to implement the missions and objectives of the Abuja Treaty and NEPAD in Central Africa. In other words, the funding attributed to the Programme for Infrastructure Development in Africa3 (PIDA) doivent transiter par le canal de la CEEAC.

The Protocol on energy cooperation among ECCAS member countries4 thus constitutes the reference for regional power integration. Under this protocol member countries undertake to cooperate in promoting hydroelectric and renewable sources of power. In particular, member countries must cooperate to:

nInterconnect their national grids and trade power across borders, and

1 The six CAEMU countries and Angola, Burundi, D. R. Congo and Sao Tome & Principe. 2 Cameroun, Congo, Gabon, Guinée Équatoriale, RCA et Tchad.3 The priority power projects of the PIDA have been defined and approved by the eight African Regional Economic Communities in a bottom-up approach (CEN-SAD, COMESA, EAC, CEEAC/ECCAS, CEDEAO/ECOWAS, IGAD, SADC and UMA), to respond to the continent’s increasing infrastructure needs to 2040. They also serve to drive the objectives of Agenda 2063. The structuring framework that is the PIDA refers to an African and international “donor community” that are stakeholders in the process (AfDB, EU, IDB and DFID).4 Appendix VIII of the Treaty setting up the ECCAS



nTrain staff from national and/or regional power generating, transmission and supply utilities at all levels.

In line with this protocol, priority electricity supply programmes and policy will focus on:

nThe development of infrastructure and transmission services,

nThe development of an integrated single market,

nThe promotion of energy potential.

Implementation of this vision requires the development of power generating infrastructure, cross-border trade and grid interconnections. This integrated regional approach to the development of electricity infrastructure will make it possible to build a large market with competitive prices, rather than the current co-existence of smaller national markets that more often than not are inefficient.

It is to translate this vision into reality that in 2003 the member states created the Central Africa Power Pool (CAPP). This specialised agency of the ECCAS is responsible for implementing regional cooperation around power supply.

2.1.2 Universal Access to Modern Energy Services and Economic and Social Development

As in other African regions before it, Central Africa has undertaken the development of a White Paper on a regional policy for universal access to modern energy services for economic and social development. This document proposes a joint ECCAS-CAEMU vision of universal access to modern energy services for the people by 2030 with a view to achieving sustainable economic and human development for Central Africa.

Three main principles underlie this vision:

nnnn Good regional, national and local governance,

nnnn Energy security and the development of renewable energies, in particular the promotion of the hydroelectric potential,

nnnn Equity, inclusive development and poverty reduction.

The White Paper is currently being approved by the Conference of the Region’s Heads of State and Government.

Implementation of the White Paper will require considerable investment. Nonetheless, the estimated amounts remain realistic, bearing in mind the region’s resources, the dynamism of its economy and support from donors. As regards access to energy services provided through electricity, investments required will be around 9.8 million dollars between 2014 and 2030. In terms of developing new capacity, around 68 billion dollars will be required during the period 2014 to 2030, of which more than 91% would be for hydro-electric power stations.

Implementation of the White Paper is perfectly in line with the Central African energy policy. The planned intensive development of power generating infrastructure combined with the development of transmission infrastructure and grid interconnections participates fully towards the ECCAS objectives around promoting energy potential and establishing an integrated single market.



Through the development of regional actions around power supply, the ultimate objective is clearly to respond to the general public’s and industrial operators’ demand for a reliable and affordable energy supply.

2.1.3 Other Regional Initiatives in the Energy Sector

The Action Plan to Promote Energy Access in the six ECCAS member states presented to the Conference of ECCAS Heads of State in the first quarter of 2006 constitutes another key initiative in terms of increasing public access to energy.

The impact of this plan is primarily felt in peri-urban areas, due to specific infrastructure installed as part of the peri-urban access programme carried out in the selected beneficiary countries5.

In addition to increasing access in peri-urban areas, this plan was designed as a step in building a community energy policy, in coordination with the activities entrusted to the CAPP. The member countries involved share borders and have electricity systems at varying levels of development. These systems are not yet interconnected, with the exception of a few rare and short cross-border medium or even low voltage power lines.

The Energy Action Plan thus has a Planning section, which principally aims at developing access to electricity services in border areas which are currently poorly supplied if at all. This objective is to be achieved through “nearby and appropriate” hydroelectric power sites that can provide the areas concerned with a satisfactory power supply.

The Planning section complements the “peri-urban access” section. It highlights projects which demonstrate the shared commitment by member countries to think about energy sector development from a regional standpoint. Among the projects identified, some are structuring for the region because they propose to develop a transmission network with the possibility of providing a medium voltage power supply to many hitherto unconnected areas or areas lacking in services due to their remote location. Others are more typical cross-border projects, involving the pooling of generating capacity to supply a clearly defined border area.

2.2 The ECCAS Agency Responsible for Energy Policy Development and Implementation: CAPP

Within the ECCAS, the general objective is to develop existing potential and create a regional electricity market. A specialised regional agency, the Central Africa Power Pool has been created to this end.

2.2.1 Role of the CAPP

As the specialised agency of the ECCAS, the role of the CAPP as stipulated in its founding texts is to contribute to building a regional electricity market able to meet the electricity needs of both industry and the general public. To do this, there must be a reliable, affordable and environmentally-friendly power supply that supports the economic and social development of the region.

The successive CAPP action plans are aligned with NEPAD’s priority action projects in the context of Central Africa. They focus on two key aspects:

nnnn The interconnection of all ECCAS national power grids and

nnnn The rehabilitation / interconnection of the Inga dam.

5 Cameroon, CAR, Congo, Gabon and Chad.



2.2.2 Dispositif institutionnel du PEAC

The 12th Conference of ECCAS Heads of State and Government decided in January 2005 to make the CAPP an autonomous specialised Community agency. The CAPP is thus responsible for:

nnnn Implementation of the regional energy policy,

nnnn Expansion of regional infrastructure,

nnnn Establishing the commercial, legal and technical conditions conducive to investment,

nnnn Power trade activities across all the countries of Central Africa.

Unlike most of the other cooperative institutions of the sub-region, the CAPP has the particularity of having two types of members: the ECCAS member states and the national power utilities on the basis of, respectively, an intergovernmental framework agreement and an inter-utility agreement.

The highest decision-making body of the ECCAS is the Conference of Heads of State and Government, which meets at the behest of the Council of Ministers for Foreign Affairs of the member states. The CAPP sits just below these ECCAS deliberative bodies and is organised in four levels:

nnnn The Council of Ministers for Energy of the member states

nnnn The Executive Committee, made up of general directors or general secretaries of the Ministries of Energy

nnnn The Management Committee, which consists of the managing directors or CEOs of the power utilities, whose meetings are prepared by a committee of experts

nnnn The Permanent Secretariat

Eventually, the organogram allows for the creation of the Regional Commission for Electricity Regulation in Central Africa (French acronym CORREAC), and a conciliation commission that both the Executive Committee and the Management Committee will attend respectively.



Figure 1 : CAPP Organogram

COUNCIL OF MINISTERS(Ministers for Energy)

EXECUTIVE COMMITTEE(Director General and/or Secretary

General of Public Energy Authorities)

MANAGEMENT COMMITTEE(CEO and MD of power utilities)

EXPERT COMMITTEE(Experts from power utilities

and ministries of energy)

ENVIRONMENT SUB-COMMITTEE

(Experts from power utilities)

OPERATIONS SUB-COMMITTEE(Experts from power utilities)

CONFLICT RESOLUTION BODY(Experts from power utilities and

energy authorities)

Non operational Operational

PERMANENT SECRETARIAT(Permanent Manager at HQ)

PLANNING SUB-COMMITTEE(Experts from power utilities)

This figure shows that:

nnnn the technical expertise required to accomplish the missions of the CAPP is outside the Permanent Secretariat, within the national power utilities and in particular,

nnnn with the exception of the planning sub-committee, no technical sub-committee or body is currently operational.

This means that:

nnnn There is a shortage of technical expertise within the operational structures of the CAPP. This constitutes a major disadvantage when it comes to contributing to and/or supervising the development of interconnection projects which involve, by their very nature, complex technical infrastructure,

nnnn The Permanent Secretariat is currently completely lacking in the technical expertise that the technical sub-committees, as yet non-operational, are supposed to provide. The Permanent Secretariat therefore cannot play its role as defined by the theoretical institutional framework. Indeed, to do so it would need to provide technical expertise to retain its position of consolidating contributions from the technical bodies and providing the interface



with the decision-making bodies (Management Committee, Executive Committee and Council of Ministers).

Due to the lack of technical committees and bodies, the Permanent Secretariat looks even more like the centre piece of the CAPP operational structure.

2.3 PESTLE6 Analysis of the CCAP

2.3.1 Justification

Before developing and implementing a strategic plan an external analysis of the expected impacts of Political, Economic, Social, Technological, Legal and Environmental (PESTLE) factors must be carried out. This evaluation of the various environmental aspects helps to identify potential changes to be recommended to maximise opportunities and minimise threats. Such a strategic analysis is akin to gaining a “cross-section” view of the situation and to understand the long-term issues.

2.3.2 CCAP Factors et Impacts

It is worth identifying the factors that have an influence on the external environment of the CAPP, but which are not directly controlled by it. This identification is based on a literature review and interviews carried out both within the CAPP headquarters and during field missions carried out in the member states.

6 The PESTLE analysis is a very useful tool for giving an overall view of the environment in which an organisation is operating. In particular it highlights the risks associated with market progression. It is also useful for understanding the external context that impacts the internal context of an organisation.



“Political” Factor Impact on the CAPP

Limited political influence to accelerate ratification of inter-country protocols on sharing power generating infrastructure and developing grid interconnections.

The CAPP was created in 2003, at the initiative of the Association of Power Utilities in Africa (APUA)7, as an Economic Community of Central African States (ECCAS) agency in charge of developing member states’ power supply systems.

The decisions that concern the CAPP are thus taken during its annual meetings presided by the Council of Ministers for Energy. This Council of Ministers for Energy meeting does not coincide with that of the Council of Ministers for Foreign Affairs of the ECCAS, which precedes the ECCAS Conference of Heads of State and Government.

The lapse of time required for CAPP decisions to be made is thus extended, and the CAPP’s influence over the ratification of inter-country protocols for instance is limited.

The development of cross-border trade within ECCAS depends directly on the intervention of the public authorities, at the highest level. It is therefore necessary to be as close as possible to the Conference of Heads of State and Government for optimal effectiveness.

7

“Environmental” Factor Impact sur le PEAC

Considerable pressure from outside the ECCAS to promote Central Africa’s hydroelectric potential in the search for renewable energy.

Imperative for this region to adopt operational environmental and social directives so as not to delay the development of priority projects.

CAPP priority projects should take this “export” vision into account alongside the increase in grid interconnections amongst ECCAS member states. Need for the CAPP to take these directives into account and to disseminate them as widely as possible.

7 APUA corresponds to the former Union of Producers, Transporters and Distributors of Electric Power in Africa (UPDEA)



“Economic” Factor Impact on the CAPP

Regulatory, legal and pricing obstacles mean currently only public projects exist. At the present time there are no public-private-partnership (PPP) projects and no private investment at all.

One of the most important issues for the CAPP is to manage to assume its position as facilitator in mobilising funding on behalf of the member states for infrastructure projects over which the majority of the governments wish to retain direct control.

There is virtually no correlation between most of the prices in the region and the actual economic costs. Added to this is a high level of technical and non-technical losses. All these factors compromise the long-term financial viability and the capacity to ensure the financial equilibrium of operations and explain the reticence of the private sector to invest or even participate in a PPP. The CAPP must play a role of information provision and standardisation as regards pricing, working towards profitable tariffs; essential if the private sector is to become more involved.

Even if current power system developments are being made on the basis of bilateral or multilateral funding, business models involving the member states’ power utilities need to be discussed within a real framework of regional integration, i.e. under the management of the CAPP.

“Social” Factor Impact on the CAPP

Very high demand of industries and people in Central Africa for abundant, reliable and affordable power supply

The transformation of the immense hydroelectric potential of the region into electricity, thus extending coverage, access and supply represents the major challenge of the mission entrusted to the CAPP by the ECCAS Heads of State and Government.



“Technical” Factor Impact on the CAPP

Of all the African power pools, Central Africa is the one with the fewest interconnections (3) to date, even if 15 are currently under development.

The CAPP, as Project Manager, must play a catalysing role in making a marked increase in the opportunities to share power generating infrastructure and in the development of grid interconnections and cross-border trade.

Despite the considerable hydroelectric potential of the region, no member state really has sufficient capacity reserves. Pooling infrastructure run by the CAPP will help to resolve this situation, partially at first, because the member countries are located on either side of the Equator.

“Legal” Factor Impact on the CAPP

Need to harmonise sector legislation and implement it.

Need to improve the legal/contractual agreements between countries (e.g. balance between supply and demand).

Differences in regulatory approaches between countries.

Interconnection agreements being prepared.

The majority of member countries do not allow third party access to grids

One of the most important issues for the CAPP is to manage to assume its position as Project Manager, to coordinate the harmonisation of national legislation and standardisation of agreements required for regional market operation.

• Challenge for the CAPP to harmonise and standardise different legislative systems of CAPP member countries.

• Key role for the CAPP in regulating these legal/contractual agreements.

• Role for the CAPP in reconciling differences and lobbying for harmonisation

• The CAPP must ensure that these agreements are compatible with International Protocols.



WHY A REGIONAL ENERGY POLICY STRATEGY?3



3 Why a Regional Energy Policy Strategy?

Examination of the regional context and the subsequent review of the national context in each of the ten ECCAS member states highlight the political commitment within the region to a strong and ambitious regional energy policy. This stated commitment contrasts starkly however with the considerable delays noted in the physical construction of regional power generating and transmission infrastructure and in the establishment of a regional electricity market.

This is despite the region undertaking since 2005 several structuring actions to implement its policy: the formulation of a master plan, the identification of priority projects, progress in the development of some of these projects, the passing of a Central African Electricity Market law, advanced reflection on a power generation operating law etc.

However, due to a lack of continuity in actions taken, the initial plans of the Region have fallen well behind those of the other Regional Economic Communities and their Power Pools.

3.1 The Regional Energy Policy Strategy Paper (REPSP)

3.1.1 Objectives of the REPSP

Based on existing Regional structures and actions already underway, in particular the Priority Investment Programme (PIP) resulting from the regional planning study, the Regional Energy Policy Strategy Paper (REPSP) aims:

i. Firstly to identify the actions required to establish a regional electricity market. It defines a development strategy which sets forth the responsibilities of the regional, national and international stakeholders. The REPSP also establishes an implementation timetable that highlights the inter-dependency among activities and the resources required to carry them out.

ii. Secondly to define the strategy for developing the legal, IT and technical tools to plan, manage and monitor the future regional electricity market. This other aspect is based on a SWOT analysis of the investments to be finalised for developing grid interconnections.

3.1.2 Strategy Paper Development

As stipulated in the CAPP founding texts, it is responsible for establishing a regional market that is able to meet the electricity needs of both the people and industrial operators. As a result, the institution must play a catalysing role in cross-border power trade in the region, with the REPSP as the instrument for achieving the power pool’s medium and long-term goals.

The strategy timeframe is 2014-2030. During this period the CAPP will set the priorities for establishing Central Africa’s regional electricity market as one of the key elements for the region’s economic and social development.



The strategy is proposed in two stages:

i. From 2014 to 2019, when the CAPP will work to lay the foundations for the regional electricity market by focusing specifically on the development of power generating infrastructure and, in particular, transmission grids. This is a prerequisite for setting up an institutional and regulatory framework,

ii. From 2020 to 2030, when the market will be set up and come into operation on the basis of the foundations laid during the first stage.

Analyses carried out prior to developing the strategy demonstrate that the activities proposed are all focused on the effectiveness of the power pool’s governance framework (CAPP Permanent Secretariat and its sub-committees), that is to say the CAPP’s capacity to assist member states in the regional integration process.

3.1.3 Scope of the REPSP

In the terms of reference for this activity, it is specified that the REPSP must “define the strategic framework to support regional integration of ECCAS member states’ electricity market, to develop regional power infrastructure and trade, and to increase public access to a modern, abundant and affordable electricity supply”.

Two documents underlie the proposed developments:

a. The master plan study for developing an electricity market in Central Africa (2005-2015), and

b. The Central Africa electricity grid interconnection study.

It should be noted that the REPSP is not intended to replace these two documents. Rather it offers a clear path to establishing the regional market by prioritising the investments required.

The proposals and recommendations made are aligned with the two existing Central Africa regional electricity market documents:

c. The Central Africa electricity market law (October 2009), and

d. The Central Africa electrical system operation law (June 2011)

3.2 Central Africa Energy Policy – Objectives and Expected Results

The strategic objectives correspond to what the institution seeks to achieve over the stated timeframe: 2014-2030. These objectives are fully aligned with the mission and the mandate that the ECCAS has attributed to the CAPP as regards energy policy.



3.2.1 Ultimate Objective

ULTIMATE OBJECTIVE

The regional electricity market is established among ECCAS member states to provide affordable and environmentally-friendly electricity to support the economic and social developpement of the region.

PREREQUISITE SPECIFIC OBJECTIVE 1

To provide assistance to develop power generating and transmission infrastructure in Central Africa through the monitoring and implementation of PIP and CBEP + the building of proven skills in infrastructure construction and maintenance.

EXPECTED RESULTS

Grid interconnections are developped and power generating infrastructure is pooled to establish a regional market capable of meeting the electricity needs of industrial operators and the general public within the framework of the regional CAPP energy policy strategy.

3.2.2 Specific Objectives

SPECIFIC OBJECTIVE 2To develop a legal and regulatory environment conducive to the development of a regional electricity market in Central Africa.

EXPECTED RESULTS

National regulations of ECCAS member states are harmonised and are compliant with the Central Africa electricity market law with a view to regional integration.

CAPP member states are assisted in implementing the legal and/or institutional electricity sector reforms required for a regional harmonisation.

Standardised cooperation tools adapted to market needs are developed and provided to the various electircity sector stakeholders.

A balance between regional integration and adaptation to the specific national legal context is maintained.



SPECIFIC OBJECTIVE 3To contribute to the development of trade rules, to setting up a regional operator responsible for supervising the regional market and to the development of an economic and financial regulatory framework.

EXPECTED RESULTS

Contribution to the establishment of rules for developing cross-border power trade transactions to ensure compliance among the various regional market stakeholders.

Contribution to the choice of a transparent trade pricing methodology to increase regional electricity trade.

Contribution to the definition of conciliation and arbitration rules to help resolve potential conflicts until CORREAC is set up.

Contribution to the setting up of CORREAC.

SPECIFIC OBJECTIVE 4To specify and interpret technical rules for operating, managing and pricing cross-border power trade over the regional grid.

EXPECTED RESULTS

Technical regulation : management of electricity transactions and trade and supervision of interconnected electrical systems operating laws.

Specification and interpretation of technical rules to organise crod-border electricity trade over the grid.

Use of equipment for administering and maintaining SCADA.

SPECIFIC OBJECTIVE 5To facilitate institutional capacity building and skills consolidation to supervise and manage the regional electricity market.

EXPECTED RESULTS

The requirements as regards assistance in developping and implemeting capacity business ans skills consolidation programmes for power pool supervision and management in three areas are assessed : i. regional integration of legislative and regulatory frameworks ; ii. iregional trade integration, with a fair commercial framework and power trade ; iii. regional integration of infrastructure with a framework suitable for planning and operating interconnected electricity systems.



3.3 Prioritisation of Strategic Objectives

As regards strategic planning, there are various methods for prioritising the strategic objectives. Some of these methods are relatively complex because they involve multiple criteria or factors, meaning that for each objective several factors need to be taken into account, for instance:

nnnn The factor’s relative importance for the operation of the institution,

nnnn The factor’s relative implementation time,

nnnn The factor’s relative cost,

nnnn The factor’s relative viability,

nnnn etc.

These methods present two difficulties as regards their application. Firstly, they require a quantitative “score” to be attributed to each of the factors which are usually qualitative and secondly, all the factors must be able to be weighted. Finally, to a large extent this type of evaluation is subjective.

Therefore, we decided to propose an approach which, although a considerable degree of subjectivity remains, has the merit of being simple. This approach is based on two main factors: urgency and importance. These factors are completely relevant for the CAPP, as certain objectives must be met before others. Thus we consider them to be more “important” than others, as they are prerequisites for the implementation of the overall process.

The two factors that serve as the basis for prioritising the strategic objectives are thus:

nnnn The urgency of implementing the specific objective in order to achieve the ultimate objective, and

nnnn The importance of the specific objective in the strategy implementation process.

By giving each of these two factors an identical weighting, it is possible to establish three levels of priority: “Critical”, “Very High” and “High”:

Priority Level No. Strategic Objective

CRITICAL

1 To provide assistance for power generating and transmission infrastructure in Central Africa (PIP, CBEP and all other integrational projects).

2 To facilitate institutional capacity building and skills consolidation to supervise and manage the regional electricity market.

VERY HIGH 3 To develop a legal and regulatory environment conducive to the development of a regional electricity market in Central Africa.



HIGH

4 To establish trade rules and set up a framework and regional operator responsible for economic and financial regulation.

5 To establish and interpret technical rules for operating, managing and pricing cross-border power trade.

This constitutes the basis for the approach used to attribute a degree of importance to each objective from “High” to “Critical” and similarly a degree of urgency. The results were then plotted on a matrix to prioritise the strategic objectives. This matrix is the foundation of the REPSP Action Plan.

Table 1: Strategic Objective Prioritisation Matrix

IMPO

RTAN

CE

HIG

HVE

RY H

IGH

CRIT

ICAL

CRITICAL VERY HIGH HIGH

URGENCY

Objective 1 : To provide assistance for power generating and transmission infrastructure in Central Africa (PIP, CBEP and all other integrational projects)

Objective 2 : To facilitate institutional capacity building and skills consolidation to supervise and manage the regional electricity market

Objective 3 : To develop a legal and regulatory environment conducive to the development of a regional electricity market in Central Africa

Objective 4 : To establish trade rules and set up a framework and regional operator responsible for economic and financial regulation

Objective 5 : To establish and interpret technical rules for operating, managing and pricing cross-border power trade

1

2

3

4

5

CRITICAL VERY HIGH HIGH

CRIT

ICAL

VERY

HIG

HHI

GH



3.4 Resources for Achieving the Ultimate Objective of the ECCAS Member Countries’ Energy Policy

3.4.1 Grid Interconnections in the ECCAS Member Countries

The results of this study date from 2010, and now constitute the reference for grid interconnections in Central Africa. The decision to install grid interconnections dates back to 2002, and the studies themselves began in November 2007, with the aim of:

nnnn Gathering data on electricity systems in ECCAS countries (demand forecasts, existing infrastructure, existing master plans, current or planned projects, institutional, legal and regulatory context etc.),

nnnn Establishing grid interconnection projects amongst the member countries, proposing several variations that took into account national programmes and suggested ways of optimising and integrating these programmes,

nnnn Conducting the technical, economic, environmental and institutional feasibility studies and detailed technical infrastructure design (transmission lines and substations) for the proposed interconnections.

The grid interconnection study was funded by a donation from the African Development Bank, which fully covered the cost of each of the study phases, from the preliminary study to the detailed design study and the preparation of tender documents;

On the basis of the data collected in the ten member states regarding demand forecasts, existing equipment, master plans and current and planned projects, three interconnection options for 2030 were examined.

nnnn Option 1 with two development levels:

nnnn In the long term: a direct current network associated with the development of INGA and which would support interregional transmission of large quantities of power across very long distances.

nnnn In the medium term: alongside the planned long term direct current network, set up an interregional alternating current network (400 kV and 220 kV) with two sub-options:

i. Sub-option 1A: consisting of a “coastal backbone” linking Maquela do Zombo in Angola to Memve’ele in Cameroon, and going through Pointe Noire in Congo,

ii. Sub-option_1B: consisting of a “continental backbone” linking Maquela do Zombo in Angola to Memve’ele in Cameroon, and going through Grand Poubara in Gabon

nnnn Option 2 consists in Ultra High Voltage alternating current power lines (800 kV) which can be used for both intra-regional and inter-regional transmission.

nnnn Option 3 is identical to Option 2 but includes back-up circuits.



The study retained option 1A as the medium term target. It includes the following interconnections:

nnnn For the coastal backbone Angola - Chad with dual 400 kV AC (apart from the Yaoundé – Ndjamena section, which will have dual 220 kV AC):

nnnn Maquela do Zombo / Angola - Inga / DRC,

nnnn Mongo Kamba / Congo – Empress Falls / Gabon,

nnnn Ntoum / Gabon – Bata / Equatorial Guinea,

nnnn Bata / Equatorial Guinea - Memve’Ele / Cameroon,

nnnn Maroua / Cameroon - Ndjamena / Chad,

nnnn For the other interconnections (dual 220 kV AC):

nnnn Yokadouma / Cameroon - Dimoli / CAR ;

nnnn Mobaye / DRC - Kembé / CAR

N.B. Along the corridor chosen, a few links are missing for which further studies are underway. These are:

nnnn The Inga / DRC – Cabinda / Angola - Pointe Noire / Congo line,

nnnn The Empress Falls / Gabon – Ntoum / Gabon line,

nnnn The Memve’ele / Cameroon – Maroua / Cameroon line

The grid interconnection study constitutes the general framework for increasing interconnections and developing the regional market. However, in 2004 during the CAPP meeting in Malabo (Equatorial Guinea) the ECCAS Council of Ministers set the priorities for regional power generating and transmission infrastructure development. The CAPP was mandated to work specifically on increasing trade through two complementary components:

nnnn Priority Integration Projects (PIP)

nnnn Cross-Border Electrification programme Projects (CBEP)

These projects are in line with NEPAD priority action projects in Central Africa with:

nnnn The interconnection of electricity grids in ECCAS countries, and

nnnn The rehabilitation / inter-connection of the Inga Dam, with

nnnn A pilot cross-border electrification programme.



3.4.2 Priority Integration Projects – (PIP)

Priority Integration Projects (PIP) are at the heart of regional electricity market development. They involve the construction of power generating and transmission infrastructure so that electricity can be traded and reliable and affordable power can be supplied to industrial investors and the general public.

They systematically involve the construction of power generating plants and additional high-voltage transmission networks to take advantage of the enormous hydroelectric potential of the region. By doing so, the additional capacity developed by the member states can be sold. The aim is to notably reduce the cost of undistributed power and diminish unsatisfied demand as a result of the benefits generated by the ensuing economies of scope8.

There are currently 15 PIP9 in various stages of implementation. To give a precise idea of the current state of progress on each of the 15 infrastructure projects a chart giving an overview of the project stages is provided.

The table below gives an idea of the indicative duration of the different implementation stages of an infrastructure project and is colour coded to show the current progress of the 15 PIP that the CAPP is responsible for implementing.

Table 2 : Indicative duration of the implementation stages of an infrastructure project

Activity duration

Total Duration

Activity / Stage

0 0 Registration on PIP list

6 6 Signing of onter-country protocol

12 18Mobilisation of funding for feasability studies, tender document preparation, call for tender adjudication

12 30 Feasibility and design studies (technical, financial and institutional)

12 42 Validation of the studies, decision by countries to begin construction

12 54 Validation des études, décision des Etats d’engager la réalisation

12 66 Launch of construction, adjudication

36 102 Construction and supervision

12 114 Completion and commissioning

Infrastructure operation

N.B. all duration figures given in months.

All the PIP projects are listed and positioned in the following table with their implementation durations on a time scale from 2014 to 2030, which is the time period for our strategic plan.

8 Power generation costs vary considerably among the countries in the region, therefore significant savings can be made through regional optimisation.9 The list of the 15 PIP projects and their costs are appended.



Table 3 : Overview of implementation durations for the 15 PIP of the CAPP

N° Intitulé du PIP 2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

1 Development of Djibloho (Eq. Guinea)

2 Development of INGA site and associated interconnections

3 Inga - Cabinda - Pointe Noire interconnection

4 Cameroon - Chad interconnections

5Hydroelectric development of Dimoli & associated transmission lines from CAR - Cameroon

6 Cameroon (Memve’ele) - Gabon - Eq. Guinea interconnections

7 Gabon (Grand Poubara) - Congo interconnections

8 Chollet hydro powerplant and transmission lines to Congo and Cameroon

9 Supply of Burundi from eastern DRC - Kolwezi - Bendera (1) interconnection

10Strengthening of Boali - Bangui interconnection and Bangui - Zongo - Libenge interconnection

11 Hydroelectric development of the three Lobaye sites

12 Connection of the Soyo thermal gas plant to Inga - Cabinda - Pointe Noire

13 Interconnexion électrique Inga (RDC) et Calabar (Nigeria)

14 Oyem (Gabon) - Mongomo (Eq. Guinea) interconnection

15 Study on ECCAS member country grid interconnection

(1) line that is complementary to the Bendera - Kalémie, Uvira - kiliba - Bujumbura lineRegistration on PIP listSigning of inter-Country protocolMobilisation of funding for feasibility studies, tender document preparation, call for tender, ajudicationFeasibility and design studies (technical, financial and institutional)Validation of the studies, decision by countries to begin constructionMobilisation of funding (call for tender + construction + supervision)Launch of construction, ajudicationConstruction and supervisionCompletion and commissioningInfrastructure operationPrerequisite: signing of Inter-Country AgreementAdditional bilateral studiesNew project awaiting information and data from the Angolan party to begin the process



Although all the PIP projects are by definition integratory projects, those chosen are divided into two groups:

nnnn “Interregional” PIP: these represent the contribution of Central Africa to other regions on the continent. This involves connections with the sub-regions to the North, South and West of the African continent. The hydroelectric dam site at Inga in Democratic Republic of Congo constitutes the starting point for the “interregional” PIPs, which are qualified as “ultra-high-voltage electricity boulevards”. They are intended to supply other power pools, thus enabling the increased capacity generated thanks to the development of the Inga site in DRC (Inga 3 Low Falls, Inga 3 High Falls, then Inga 4 to Inga 8 in the long term) to be traded.

These projects are characterised by their pan-African impact, by the involvement of stakeholders from outside the ECCAS region, their scale and the considerable investment required to implement them.

There are two “interregional” PIPs:

nnnn The development of INGA and associated interconnections,

nnnn The INGA (DRC) – Calabar (Nigeria) interconnection.

n “Intraregional” PIP: These concern the intraregional AC (400kV and 220kV) network within the Central Africa region, connecting ECCAS member countries. They are basically projects focusing on national power generating infrastructure intended to support regional infrastructure.

These are the remaining 13 PIPs:

nnnn Inga - Cabinda - Pointe Noire interconnection,

nnnn Chollet hydroelectric power plant and associated transmission lines to Congo and Cameroon ;

nnnn Cameroon - Chad interconnections,

nnnn Cameroon - Gabon – Eq. Guinea interconnections,

nnnn Gabon (Grand Poubara) – Congo interconnections,

nnnn ECCAS member state grid interconnections,

nnnn Supply of Burundi from eastern DRC - Kolwezi - Bendera10 ;

nnnn Strengthening of Boali - Bangui and Bangui - Zongo - Libenge interconnections,

nnnn Hydroelectric development of Dimoli & associated CAR - Cameroon transmission lines,

nnnn Hydroelectric development of the three Lobaye sites,

nnnn Connection of the Soyo thermal gas power plant to Inga - Cabinda - Pointe Noire,

10 Transmission line supplements the Bendera - Kalémie, Uvira - kiliba – Bujumbura line.



nnnn Oyem (Gabon) - Mongomo (Equatorial Guinea) interconnection,

nnnn Development of Djibloho (Equatorial Guinea).

Box 1: Progress of an “interregional” PIP: INGA III Low Falls

The feasibility studies are completed and the final report was submitted in September 2013, advising the development of the site in 7 successive phases: Inga 3 Low Falls, Inga 3 High Falls, then Inga 4 to 8 to achieve a total generating capacity of 42,000MW.The first phase currently underway concerns Inga 3 Low Falls with an installed capacity of 4,800 MW.The recommendations at this stage are to manage to sell a minimum of 2,500MW abroad to make the project bankable. Hence the Great Inga treaty between DRC and the Republic of South Africa, signed in October 2013 which adopts the sale of 2,500 of the 4,800MW generated to South Africa, passing through Zambia and Zimbabwe.It is then planned to allocate 1,300MW for sale to mining clients in Katanga. The remaining 1,000MW will be sold to the SNEL (national electricity utility) for clients on the western DRC grid.The project is intended to be run as a PPP, with 70% to be financed by private investors and the remaining 30% by the public sector (DRC and its usual donors). The total estimated cost of Inga 3 Low Falls is 12.6 billion USD.The business model requires the installation, ex nihilo, of a project management authority: the Inga Site Development and Promotion Agency (French acronym ADEPI). Since its creation in December 2014, this agency has been responsible for taking over the activities of the current Inga 3 Project Management Unit (French acronym CGI3).The entire project is currently supervised by the Ministerial Commission for the Development of the Inga site (French acronym CODESI).

Source: SNEL – DRC

3.4.3 Complementarity between “intraregional” and “interregional” PIP

On the basis of the grid interconnection studies and in order to set up a Central Africa electricity market, it appears that the 2030 Central Africa Interconnected Power System (French acronym SEIAC), with a view to enabling the free trade of 14,000 MW is a technically viable ultra-high-voltage system which is fully aligned with the other power pools on the continent (WAPP and SAPP).

The CAPP’s primary interest is in pooling the enormous hydraulic resources available in Central Africa by 2030, by optimising intraregional interconnections but without neglecting interregional development. This means a certain number of constraints as regards investment decisions must be taken into account.

During the SEIAC construction phase, it is essential, to ensure the operability of these electrical systems, to focus on the reliability of the interconnected systems and the flexibility of the generating means behind them, regardless of the primary energy source. Both the grid interconnection studies and the master plan highlight the need to carefully manage the location of static and rotating compensators to ensure the operability of the SEIAC.



In other words, according absolute priority to the gigantic generating plants means that during the transition phase between 2020 and 2025, 400kV transmission lines will be used with low loads, leading to problems in terms of maintaining voltage, stability and thus operability. The need to install compensators, leads to the recommendation, in terms of priority, that power generating plants be rehabilitated or constructed at even points along the main North-South Central Africa electrical system interconnection backbone.

The intraregional PIP concerning the development of connections between Angola, Congo, DRC, Gabon and Cameroon must rehabilitate and/or construct power generation plants at even intervals across all the areas adjacent to the North-South backbone. This includes both projects linked to the rehabilitation of generating plants and industrial projects (aluminium refineries, mines etc.) as well as private investment projects that are awaiting a reliable and affordable electricity supply in the region.

In short, the optimal complementarity between interregional and intraregional PIP leads to the recommendation that investments be distributed fairly in time and space across central Africa. The reorganisation of the timetable for key decisions highlights the following investments:

1. Rehabilitation/construction of power generating plants evenly distributed across all members states along the North-South backbone,

2. Construction of ultra-high-voltage interconnection and distribution substations with sufficient reactive power compensators,

3. Construction of the North-South backbone infrastructure in sections to connect and operate the foregoing elements to the benefit of regional distribution grids, and

4. Interest for macro-equipment for hydroelectric power generation.

The specific benefits for the region from these 4 elements will facilitate the development of intraregional projects that make a real contribution to equitable power distribution, for instance:

nnnn The finalisation of development of Grand Poubara / Gabon, and even equipping the Empress Falls (Gabon), to benefit Gabon and Congo by adapting the path of the backbone with a hybrid coastal/continental branch,

nnnn A focus on equipping Warak and Lom Pangar to benefit Cameroon and Chad,

nnnn A focus on equipping Chollet to benefit Congo and Cameroon,

nnnn A focus on rehabilitating Ruzizi so that the regional needs of eastern DRC and Burundi can be met,

nnnn A focus on rehabilitating Inga generating means to benefit Kinshasa, Brazzaville and Pointe Noire.



Figure 2: Existing high voltage networks in CAPP

Source: SIG - PEAC

Existing high voltage networks in CAPP



3.4.4 Cross-Border Electrification Programme Projects (CBEP)

The 15 projects of the Cross-Border Electrification Programme are rural projects involving at least two ECCAS member countries. They are characterised by the fact that they do not require the construction of new power plants or high voltage transmission networks. They make use of what already exists, that is to say the surplus of a member country (A) which supplies a member country (B) through the construction of medium voltage transmission lines.

This option involves unidirectional cross-border power flows and the supply of reliable and affordable electricity to the recipient populations. This, in itself, will contribute to the local economic development of the area concerned.

Table 4 : Current progress on CAPP CEPP

No. CCEP Name Situation in 2014 Donor

1Electrification of Zongo (DRC) from Bangui (CAR)

Design studies & tender completed Seeking funds to carry out construction

African Development Bank

2Electrification of 7 villages (CAR) from Mobaye (DRC)



3Electrification of 6 localities (Tchad) from Guider (Cameroun)



4Electrification of Bongor (Tchad) from Yagoua (Cameroun)


European Union

5Electrification of Datcheka & Alii (Tchad) from Doukoula (Cameroon)

Seeking funds

6Electrification of southern provinces (Cameroon), Wole Ntem (Gabon) & Kye Ntem/WoleNzas (Eq. Guinea)

Seeking funds

7Electrification of Mbinda & Mayoko from Lekoko (Gabon)


European Union

8Electrification of Divénié (Congo) from Malinga (Gabon)



9Electrification of Bambama (Congo) from Boumango (Gabon)

Financement des Études acquisAfrican

Development Bank

10Electrification of Lékéti & Okoyo (Congo) from Léconi (Gabon)

Seeking funds

11Increasing supply for Noqui and electrification of 16 villages (Angola) from Matadi (DRC)


European Union

12Electrification of Maquela do Zombo (Angola) + 4 localities in DRC from the high voltage substation of Kwilu (DRC)

Financing for studies acquiredAfrican

Development Bank

13Electrification of Kye Ossi (Cameroon) from Ebebiyin (Eq. Guinea)

Seeking funds

14Electrification of Bolobo (DRC) from Makotipoko (Congo)

Seeking funds

15Electrification of Kouanmouth (DRC) from Ngabè (Congo)

Seeking funds



Although they are an integral part of the regional market aspect, these CBEP complement the development of interconnections resulting from the construction of high voltage transmission networks through the PIP.

3.5 The Current Situation of ECCAS Member State Regional Infrastructure Extensions

A review of the situation on the ground as regards regional power in Central Africa shows that the “market” is truly embryonic. The lack of trade is the norm today, the two11 (2) exceptions to this situation are:

nnnn The INGA (DRC) – Brazzaville (Congo) interconnection,

nnnn The interconnection from the RUZIZI II regional power plant between the east of the DRC, Burundi and Rwanda

This situation gives rise to the suggestion that the future extension of regional infrastructure be divided into two stages:

i. A short to medium term stage from 2014 to 2019, which involves mobilising the necessary financing. The analysis shows that apart from the development of Djibloho (Equatorial Guinea), all the infrastructure required to pool generating resources and increase interconnections is either in the design stage, or construction phase as regards Inga 3 Low Falls. In any case, none of the infrastructure of these PIP will be ready for commissioning until 2019, and

ii. A long-term stage which extends from 2020 to 2030, during which the 15 PIP will successively be commissioned and begin operations and when all the conditions will be met for setting up and operating the regional market.

3.5.1 The Role of the CAPP in Extending Regional Infrastructure in the Medium Term: 2014 - 2019

The mission statement for the CAPP during this stage involves implementing effective, win-win partnership mechanisms among member countries. The priority is to mobilise the financing required to construct the infrastructure needed to pool generating resources and increase interconnections.

This priority is an absolute prerequisite for the subsequent development of regional power trade within the ECCAS.

To be in a position to fulfil its financing mission, the CAPP Permanent Secretariat must be entrusted with the role of Project Manager by the member states to develop this infrastructure. It will then be in a position to take responsibility for:

nnnn Preparing the harmonisation of national legislation and regional regulations,

nnnn Contributing to the improvement of the regulatory and economic environment to attract the private sector, and

nnnn Preparing the conditions for the technical regulation of regional trade which will increase over time.

11 In reality, a third exception could be mentioned that is the transmission line connecting INGA (DRC) and Southern Africa (via Zambia).



The following table illustrates the above statements. It confirms that all the PIP – with the exception of the development of Djibloho (Equatorial Guinea) – are still, in this 2014-2019 period, seeking financing to begin infrastructure construction.



Table 5: Progress of the 15 PIP during the 2014 – 2019 period


2015

2016

2017

2018

2019





5 Hydroelectric development of Dimoli & associated transmission lines from CAR - Cameroon





10 Strengthening of Boali - Bangui interconnection and Bangui - Zongo - Libenge interconnection





15 Study on ECCAS member country grid interconnection

(1) Lign that is complementary to the Bendera - Kalémie, Uvira - kiliba - Bujumbura line

Registration on PIPSigning of inter-Country protocolMobilisation of funding for feasibility studies, tender document preparation, call for tender, adjudicationFeasibility and design studies (technical, financial and institutional)Validation of the studies, decision by countries to begin construction Mobilisation of funding (call for tender + construction + supervision)Lancement of construction, adjudicationConstruction and supervision Completion and commissioning Infrastructure operation Prerequisite : signing of Inter-Country Agreement Additional bilateral studies New project awaiting information and data from the Angolan party to begin the process



Figure 3: National Projects of Member Countries and PIP to 2019

Source: SIG - PEAC

National Projects of Member Countries and PIP to 2019



3.5.2 The Role of the CAPP in Establishing the Regional Electricity Market: 2020 - 2030

The period from 2020 to 2030 is characterised by a gradual commissioning of all infrastructure from 2020 to 2024. At this stage shaped by the increase in trade, the role of the CAPP Permanent Secretariat will focus on meeting the conditions to implement, manage and supervise the market.

Even if they are still relevant, considerations relating to infrastructure development will begin to take a back seat during this period, as considerations regarding operational planning for regional market development, pricing of transmission and associated services and the regulation of operators come to the fore.



Table 6: Progress on the 15 PIP over the 2020 – 2030 period


2021

2022

2023

2024

2025

2026

2027

2028

2029

2030





5 Hydroelectric development of Dimoli & associated transmission lines from CAR - Cameroon





10 Strengthening of Boali - Bangui interconnection and Bangui - Zongo - Libenge interconnection





15 Study on ECCAS member country grid interconnection(1) Lign that is complementary to the Bendera - Kalémie, Uvira - kiliba - Bujumbura line

Registration on PIPSigning of inter-Country protocolMobilisation of funding for feasibility studies, tender document preparation, call for tender, adjudicationFeasibility and design studies (technical, financial and institutional)Validation of the studies, decision by countries to begin construction Mobilisation of funding (call for tender + construction + supervision)Lancement of construction, adjudicationConstruction and supervision Completion and commissioning Infrastructure operation Prerequisite : signing of Inter-Country Agreement Additional bilateral studies New project awaiting information and data from the Angolan party to begin the process



Figure 4: National Projects of Member States and PIP to 2030

Source: SIG - PEAC

National Projects of Member States and PIP to 2030



REGIONAL MARKET INFRASTRUCTURE IMPLEMENTATION STRATEGY 4



4 Regional Market Infrastructure Implementation Strategy

4.1 Context

The ECCAS member countries have fully recognised the pressing need to take a regional approach to complement the efforts undertaken by the individual countries. This regional integration approach including a regional market has the benefit of accelerating optimisation of the enormous power potential in the region. It will help to significantly increase power generating capacity at competitive prices. Indeed, it is based on the optimal use of hydroelectricity in the equator region where the rivers have a virtually constant flow rate. This option also has the advantage over thermal plants of offering an abundant and cheap source of energy. The high voltage transmission lines to be added to this intensive hydroelectric generating infrastructure will enable cross-border interconnections to be established, to make the most of the competitive prices.

To date, the lack of cross-border power trade in Central Africa is the norm. The two exceptions are the connection between Inga (DRC) and Brazzaville (Congo) and the connection between Ruzizi II (DRC) and Bujumbura (Burundi). There are no other interconnections. They will be developed gradually, with the completion of the PIP beginning in 2020.

Initially, the situation will be a scattered market made up of bilateral trade agreements that will gradually come into force: Maroua (Cameroon) – Ndjamena (Chad) or even Inga (DRC) – Cabinda (Angola) – Pointe Noire (Congo). Subsequently, and in the long term (2025-2030), it will be possible as the various generating plants are commissioned and reserves are built up, to begin commercial trading.

The development and pooling of power generating and transmission infrastructure thus constitutes, as has already been highlighted, a prerequisite for subsequent developments. This means that even if the financing and infrastructure Project Management activities are not strictly speaking the tasks of a power trade system, the CAPP Permanent Secretariat has no other choice than to assume responsibility for them to accelerate improvement of power supply availability. They constitute a prerequisite to building a regional electricity market.

This chapter covers all the findings made and identifies the risks associated with the development of these PIP. It proposes elements for solutions that form the basis of the selected priority infrastructure project support and implementation strategy.

4.2 Analysis of the Situation of the 15 Priority Integration Projects

Several lessons can be drawn from analysing the current situation of the 15 priority integration projects as regards their current status. The findings are unequivocal: implementation of the PIP highlights serious hurdles which have been impeding progress on almost all these projects since 2004.

1. Signature of inter-country protocols,

2. Uncertainty around how to align transmission projects and generating projects,

3. Complementarity between “integration” PIP projects and “export” PIP projects,



4. Operating mode adopted to monitor and implement PIP,

5. Low capacity of national power utilities to self-finance,

6. Insufficient human resources within the CAPP to adequately monitor and implement complex projects like the PIPs.

4.2.1 Signature of Inter-Country Protocols

The 15 PIPs have been selected and adopted by the Council of Ministers for Energy, following analysis by the Management Committee then the Executive Committee during the meetings in 2004 in Malabo (Equatorial Guinea).

The initial step in implementation is the signature of the Inter-country Protocol or Agreement, to officially begin the projects. However, upon examination of these PIP a real gap emerges between the year the decision was taken by the Ministers for Energy and the year the protocols were signed by the highest authorities of the countries concerned. At the present time, that is to say ten years after the decision was made, four of the PIP are still awaiting signature of the inter-governmental protocol, without which no action can be taken. These are:

nnnn Cameroon (Memve’Ele) – Gabon – Equatorial Guinea grid interconnections,

nnnn Gabon (Grand Poubara, Tranche 2) – Congo grid interconnections,

nnnn CAR (Dimoli) – Cameroon – Congo grid interconnections,

nnnn Gabon (Oyem) – Equatorial Guinea (Mongomo) grid interconnections.

This finding indicates that the CAPP bodies, that is to say the Council of Ministers for Energy and the Council of Ministers for Foreign Affairs that the ECCAS depends on, must come together. Indeed, it is the meeting of the Council Ministers for Foreign Affairs that precedes the Conference of Heads of State and Government and hence is the linchpin of intergovernmental protocols.

The CAPP bodies must work to have a stronger influence over the executive authorities. This requires that these CAPP bodies no longer work solely with energy sector stakeholders as is currently the case. They should be organised such that they have a direct link with the Conference of Heads of State and Government, because the projects required to establish and operate a regional electricity market must be adopted directly at the highest regional level. Such a mechanism would avoid delays in project start-up. The current system places these “multi-national” projects in a standard bottom-up approach in each of the member states. That is to say they are treated like any national project and the CAPP Permanent Secretariat thus has to carry out advocacy work for which it has neither the financial nor the human resources.

This situation has a serious impact on the development of ECCAS priority projects. The tangible results are that with the exception of two projects12, the 13 others are still seeking financing to carry out the feasibility studies or are at the feasibility study stage. The operating phases, should financing be secured, will not be until 2020 to 2025 for the final one. This means that from the inclusion of the project on the PIP list to its commissioning and operation, between 192 and 252 months will have passed. This is well above the usual average of 111 months and this situation must change. 12 These are the development of the INGA site and associated interconnections for which feasibility studies have been completed and the development of Djibloho which is already in operation.



4.2.2 Uncertainty around the Alignment of Transmission Projects and Generating Projects

All the studies for ECCAS member country grid interconnections recommended a North-South coastal backbone that is part of the selected PIPs and the primary aim of which is to increase power trade within the Central Africa region. This interconnection is based on a high voltage corridor of 400kV in alternating current linking Angola, DRC, Congo, Gabon, Equatorial Guinea and Cameroon.

The regional transmission network to be developed depends directly on the joint improvement of member states’ national generating capacities. The final report of the grid interconnection study emphasises the point that the North-South backbone adopted requires the countries to take responsibility for a certain number of connections which are essential for the transmission of electricity along the whole distance.

Furthermore, for power to be traded between countries, a certain number of hydroelectric power generation plants need to be built by the member countries. These plants must come into operation before the transmission and interconnection infrastructure can be brought on line.

However, the programming of power generating infrastructure to meet domestic demand in the member states focuses on the need to minimise failure to deliver. In other words, governments sometimes opt for short-term power supply solutions via thermal power stations, at frequently very high cost, because the priority at the time is to limit the risk of outages.

For an ECCAS member state or a group of member states to have the motivation required to commit to implementing a CAPP priority project, the solution for meeting their domestic energy needs must converge or be complementary to the objective, within the CAPP project implementation timeframe and cost. If this is not the case, the CAPP projects will not receive the commitment and resources they need from the different member states.

The issue of alignment between generating and transmission infrastructure highlights the crucial need for coordination by a regional Project Manager, the CAPP Permanent Secretariat, in close collaboration with the operators and the completion on time of national projects without which regional integration projects cannot be carried out.

4.2.3 Operating Mode Adopted to Monitor and Implement PIPs

The master plan study for setting up an electricity market in Central Africa supposes that the member countries’ electrical systems will be developed under the supervision of the member countries independently of the CAPP which oversees the regional aspect.

The operating mode adopted places the end responsibility for funding and development of the national parts of the regional projects on the national power utilities of the ECCAS member states affected by these projects.

Nonetheless, this approach has certain limitations:

nnnn Challenges in the management and coordination of project implementation.

The member countries all have different capacities in terms of expertise to manage the development and implementation of these projects. They also face different challenges in terms of capacity to attract investment to develop infrastructure due to differences in their macro-economic situations. These two



factors can lead to different start dates for the construction of different segments which must nonetheless come together to form a single transmission line designed to be completed at a specific moment in time to meet an identified need for the participating member states.

Furthermore, as the human resource skills in project development and implementation vary from one country to the next, the project will only progress at the speed of the weakest of the member countries, inevitably causing delays. This situation can but lead to those countries that do have the necessary expertise launching their own programmes if an urgent need arises. This will create a gap between the regional programme supervised by the CAPP and those of the individual member countries.

nnnn Difficulties in justifying the viability of the different parts of viable regional projects

The financial and economic advantages of the programme, which are key to mobilising financing to implement the project, can only be proven when the programme is assessed in its entirety and in a regional context.

Indeed, the fact that the programme overall is financially viable does not mean that each of the different segments is viable in itself. The attempts to justify separate segments of the programme to implement them because they are within the geographical boundaries of a particular country could give rise to difficulties and make it harder to mobilise funding for that segment of the project. Such a situation will not occur, or will be much less likely, if the project is considered as a whole.

To conclude on this point, it appears necessary to adopt a project monitoring and implementation approach based on the full support and cooperation of the participating countries at all stages, including the planning stage and the regular updating of regional plans.

The strategy should also make it possible to use the best skills and capacities in the participating member countries. This use of similar expertise in the implementation of the whole project means that a viable project will not be unduly delayed by questionable attempts to justify segments of the project that are not viable on their own.

4.2.4 Low Capacity of National Power Utilities to Self-finance

With the exception of Chad, which has some of the highest prices of the continent, the other CAPP member countries tend to have overall prices that are lower than other African countries. As these prices are not profitable, and also due to the very high level of technical and commercial losses, the national power utilities have very low if not inexistent profit margins to use for self-financing.

The regional integration of power generating and transmission systems constitutes a definite asset to make the most of the comparative advantage the region has in the form of hydroelectricity which, with effective operation would lead to extremely competitive prices. However, these regional advantages will only be achieved if radical measures to reduce inefficiencies in distribution systems are undertaken at the same time.

All these initiatives are crucial for CAPP member country companies to be able to make the most of all the advantages offered by an available and affordable electricity supply thanks to regional integration.



4.2.5 Insufficient Human Resources within the CAPP to Adequately Monitor and Implement Complex Projects like the PIPs.

To carry out its daily activities the CAPP requires adequate and regular funding so the institution can fulfil the region’s energy development agenda. Access to automatic financing, without having to systematically wait to recover costs through sales, would make it possible to plan support for the member states’ utility companies.

The advantages of sustainable financing would give the CAPP the autonomy required to maintain a real regional momentum. It would give it the latitude to build on the achievements of experts from the member country utilities and it would be in a position to systematically guarantee their participation in certain specific tasks. Otherwise, and this is the current situation, the CAPP is inevitably subject to a high turn-over of experts as the experts provided by the member utilities are not necessarily those required.

The CAPP statutes stipulate that all members must contribute to all the costs associated with fulfilling the role of the CAPP as adopted by the CAPP Executive Committee. Putting this into action is arduous, as the contributions by member states and certain power utility companies are continually insufficient and/or irregular. This lack of adequate financing complicates the work of the Permanent Secretariat considerably. It is difficult for it to:

nnnn List the experts it works with on a regular basis to fulfil its project coordination and implementation role. However, the projects involved in this instance are complex and thus require proven legal, technical, economic and financial skills.

Without a pool of regular experts, the CAPP Permanent Secretariat can only count on staff seconded by the power utilities to fulfil its tasks. The motivation of seconded staff can restrict the Permanent Secretariat’s ability to fulfil its project monitoring and implementation role effectively.

The experts’ profiles may not be exactly in line with the needs at a given moment in time. This can lead to inaccurate estimations of the work required to develop and implement specific projects. Which inevitably leads to staff being replaced mid-way through, which will cause delays in project execution.

It should also be noted that the hierarchical relationship can be uncomfortable when staff are seconded by member utilities. The reporting line between seconded experts and the Permanent Secretariat may become uncomfortable in the long-term. The motivation of the expert concerned to give their all to their tasks with the CAPP may be fairly low as their salaries, paid by their utility company, are not directly linked to the performance of the CAPP.

Finally, frequent changes in experts do not enable the Permanent Secretariat of the CAPP to develop internal expertise and improve implementation efficiencies which occurs when a pool of experts collaborates regularly.

nnnn Provide consultancy services as required to carry out the activities essential to project development. The Permanent Secretariat is only able to hire consultants when it has secured funds, usually from international donors. The timing and execution of critical missions is thus dictated by the acquisition of external funding rather than by a timeline determined by the planned commissioning date of the installation.



4.3 The Suggested Implementation Strategy

To successfully and rapidly monitor and implement the priority CAPP projects, a structure is needed that can avoid or at least mitigate the aforementioned causes of delays. This structure, which will implement the project under the supervision of the Project Manager, or CAPP Permanent Secretariat, must have the total support and be fully accepted both by the member countries and by all other stakeholders involved in the priority projects.

It is crucial to have a clearly defined institutional framework within which the participants have harmonised missions, clearly defined roles and responsibilities as well as transparent rules and procedures to effectively implement the projects. This framework must be supported by concrete human, technical, financial and other resources as well as by the effective organisation of the management of each of the project stages.

This way of operating is also a donor requirement13, because it helps to cover both the execution and fiduciary risks of the infrastructure project concerned.

To avoid delays in project implementation, it will be capital to make recommendations to improve capacities as regards human resources and financial management. These proposals that target the project implementers and hence the acceleration of implementation of priority CAPP projects must be discussed by the institution bodies so they can be officially adopted at the highest level as a capital element of the CAPP’s PIP implementation strategy.

In concrete terms, this means formally recommending recourse to two forms of dedicated legal entity, in other words, that these entities be exclusively set up to meet the needs of the PIP implementers :

nnnn A project company, a private law company constituted by its shareholders in a specific country where it is registered. The specific type of company is determined for a given project by the project’s characteristics. As the vast majority of CAPP member states14 are also members of OHADA15, our analysis is based on the type of company most commonly used for projects in the electricity sector which involve substantial investment. Until the reform of company law under OHADA16, this meant a société anonyme (SA) which, besides limiting the liability of shareholders to the level of their investment, presented many advantages such as a flexible number of shareholders, an effective governance system through a board of directors and finally financing modalities suited to large investments involving various entities ; and

nnnn An international organisation, made up of the different countries affected by the project in question, such as Great Lakes Energy (GLE), the regional energy sector cooperation structure in the Economic Community of the Great Lakes Countries (ECGLC). Indeed, GLE is responsible for managing, through the Société Internationale d’Électricité des Grands Lacs (SINELAC) the regional hydroelectric complex of Ruzizi, that is to say RUZIZI II but also for monitoring and implementing the 147MW of extensions to RUZIZI II (147MW). GLE is thus an ad-hoc legal entity, that is to say set up specifically to meet a need without ties to company common law and which operates according to the rules set up by its member states.

13 The African Development Bank (AfDB) which agreed to finance the “Development of the INGA site and associated interconnections” PIP, explicitly identifies in the project evaluation document the implementation risk associated with the current Inga 3 Management Unit. For the AfDB, this unit constitutes a newly created entity and therefore has no background in monitoring and implementing a project of such complexity. The AfDB also mentions the high initial fiduciary risk due to the fact that the unit that serves as execution agency is not yet totally operational and therefore, its capacity to financially manage the project is hard to assess beforehand.14 OHADA members are: the Republic of Cameroon, Central African Republic, Democratic Republic of Congo, Republic of Congo, Republic of Gabon, Republic of Equatorial Guinea and the Republic of Chad.15 L’Organisation pour l’Harmonisation en Afrique du Droit des Affaires (Organisation for the Harmonisation of Business Law in Africa)16 Following the reform of company law under OHADA, OHADA member states may also set up Sociétés par Actions Simplifiée (SAS) whose opera-ting rules, while being largely based on those of Sociétés Anonymes, offer greater flexibility and freedom to associates who can considerably adjust the internal operating rules in their statutes. It can therefore be supposed that they will replace the Sociétés Anonymes in setting up projects.



Table 7: Comparative analysis of project companies and international organisations

PROJECT COMPANY INTERNATIONAL ORGANISATION

TYPE OF ENTITY Company under private law constituted with a share capital Inter-countries Organisation

MEMBERS The company is made up of shareholders

The Organisation is made up of Member States (MS)

DECISIONS Shareholders General Assembly Conference of Heads of State and Government

EXECUTIVE BODIES

Board of Directors which supervise a Chairman of the BoardThe board holds extended power to make all decisions on behalf of the company

Concil of Ministers which supervises an Executive or Permanent Secretariat The Council of Ministers decides through unanimity of all MS

FINANCING

Company financing is based on : - its share capital which it can increase by issuing shares or by increasing the nominal amount of existing shares, - borrowing from financial institutions, - public offering, and - loans from shareholders

The budget is fed by the MS and all other internal or extenal resources as decided by the Council of Ministers. - contributors by MS ; - loans taken out by MS and passed on to the international organisation, - subsidies, donations, bequests and other donations, including technical assistance.

4.4 Overall Recommended Framework for CAPP Operation to Establish the Regional Market

4.4.1 Language Harmonisation: terms and concepts

Project Promoter : the Project Promoter is the entity that expresses the need that defines the objective of the project, its timetable and the budget dedicated to the project. The expected result of the project is a product. The Project Promoter controls the fundamental idea of the project and thus represents the end users for whom the product is intended. Thus the Project Promoter is responsible for the functional expression of requirements but does not necessarily have the technical skills to produce the product.

Project Manager : When the Project Promoter does not have the specific experience required to run the project, it can call on a Project Manager (who is / becomes responsible for project management). The Project Manager plays a role of interface between the Project Implementer and the Project Promoter in order to help the latter clearly define its requirements and check with the former if the objectives are technically feasible.

Project Implementer The project implementer is the entity selected by the Project Promoter to produce the product, within the timeframe, level of quality and cost set by the latter in the form of a contract. The Project Implementer is thus responsible for making the technical choices to produce the product in compliance with the Project Promoter’s requirements. The Project Implementer is thus responsible within the context of its mission for designating an individual to be responsible for the proper implementation of the project, who is the project leader.



Relationship between the Project Promoter/Manager and Implementer:

1. Distinction between project implementation and promotion/management roles

A clear distinction must be made between project promotion/management and implementation, as it helps clarify the responsibilities of the two roles. The expression of needs is the entire responsibility of the Project Promoter/Manager. Indeed, in some instances, the Project Promoter/Manager may delegate operational choices to the Project Implementer, on the basis that they do not have sufficient technical knowledge to make such choices (for instance the IT department of an organisation takes control of the project once the needs have been expressed). However, only the Project Promoter/Manager can fully understand its users’ needs. Failure to clearly understand the distinction between the two roles can lead to conflict wherein each casts the blame on the other.

While the Project Implementer must take into account the initial requirements of the Project Promoter/Manager, they are not authorised to add new functions during the project, even if they deem them appropriate. The Project Implementer is however responsible for the technical choices providing these respond operationally to the Project Promoter/Manager’s requirements.

2. Communication between Project Implementer and Project Promoter/Manager

For the smooth running of the project, the roles of each entity must be clearly defined and a representative identified within the Project Promotion/Management team and the Project Implementation team. A project group that brings together the Project Promoter/Manager’s project leaders and those of the Project Implementer as well as the delegated Project Manager if relevant, must thus meet when this is necessary to resolve conflicts around the Project Promoter/Manager’s requirements or coordination of the project.

Finally, it is essential to establish a training plan that will enable both teams to share a common language and agree on how the project is to be run.

4.4.2 Recommended Framework for CAPP

To reiterate, power generating / transmission infrastructure construction projects under the master plan, upon expiry of guarantees, comprise the following phases:

nnnn Development:

nnnn Master plan ;

nnnn Feasibility studies ;

nnnn Drafting of decisions ;

nnnn Studies:

nnnn Simplified/detailed design studies

nnnn Contracts



nnnn Construction

nnnn Construction specifications

nnnn Supply

nnnn Construction

nnnn Commissioning

nnnn Acceptance

The Project Promoters for regional infrastructure construction (PIP) here are the ECCAS member countries, who hold sovereign authority. With regard to the construction of infrastructure specifically for the Central Africa Integrated Electricity System (French acronym SEIAC), and in particular the 15 PIPs, the CAPP Permanent Secretariat is the Project Manager. The member states delegate the decisions other than those pertaining to the civil engineering of dams (rock fill and concreting of the dam) for which the member states’ heritage societies are responsible.

The Project Manager gives its instructions to the Project implementer, which is a project company set up for the purpose.

To fulfil its missions, in particular that of monitoring and control, the Project Promoter or its Project Manager, seeks project management assistance from skilled personnel within the Permanent Secretariat who provide contractual services purchased from the electricity system operators in the Central Africa region.

The Project Implementer, that is to say the project company, is the entity which is entrusted on behalf of the Project Manager with designing the infrastructure in line with the requirements and obligations and with coordinating its construction and presenting it for acceptance to the Project Promoter or its Project Manager.

The Project Implementers missions include:

nnnn Specifying and proposing solutions

nnnn Organising, planning and leading project implementation

nnnn Carrying out detailed design studies

nnnn Choosing sub-contractors and suppliers

nnnn Launching and managing supplies

nnnn Organising and running the worksite

nnnn Testing and commissioning

nnnn Organising hand-over to the Project Promoter



STRATEGY FOR IMPLEMENTING AN ORGANISED ELECTRICITY TRADING MARKET 5



5 Strategy for Implementing an Organised Electricity Trading Market

5.1 Context: the Characteristics of a Regional Market

The Central Africa regional electricity market is characterised by a certain number of points which it has in common with the four other regional markets on the continent17:

a. It is part of a regional economic structure that has wider objectives and is governed by a treaty which can serve as a solid legal foundation and as a guarantee for the development of a regional market,,

b. The CAPP is a “specialised agency” of the ECCAS like the EEEOA of the CEDEAO, the EAPP of COMESA or the SAPP of the SADC.

c. The type of regional market concerned is based on an overall organisational structure made up of :

i. A supreme body within which the countries are represented at a political level. This body stipulates the political guidelines and takes high-level decisions. For the CAPP this is the Council of Ministers,

ii. A functional institution which in the case of Central Africa is the CAPP Permanent Secretariat, whose tasks and missions have been specified,

iii. An independent regulatory body, the CORREAC, which in this case does not yet exist although it is in the pipeline.

iv. An independent market operator to run the market and coordinate trade. In Central Africa this institution has not yet been set up. It will involve joint supervision of trade agreed and authorised by the national transmission network management authorities18 ;

v. An Executive Committee which, although technically independent, is accountable to the supreme bodies of the CAPP (the Council of Ministers for Energy) and must comply with its obligations, account for certain budget decisions, provide annual reports etc.

5.2 The Current Status of the Central Africa Regional Market

A Central Africa Regional Electricity Market law was officially adopted on 24 October 2009 by the ECCAS Conference of Heads and State and Government. Under this law a certain number of mechanisms, institutions and processes should now be in place for the regional market as described in the law to be able to be set up.

17 Southern Africa, East Africa, West Africa and the Maghreb. This characteristic should be emphasised because it is specific to the power pools of the African continent and the Central American power pool, SIEPAC.18 None of the ten member states has set up an independent network transmission management authority for the moment, despite appro-priate legislation in Cameroon, DRC and Gabon. This role is currently fulfilled by the power utilities’ electricity transfer directorates.



5.2.1 The Institutional Framework

On the institutional level, the only institution of all those required under the regional market law that currently exists, is the CAPP governance structure with:

nnnn The Council of Ministers for Energy, which is the body charged with implementing the Central Africa electricity market law, and

nnnn The CAPP Permanent Secretariat which is the competent body of the Power Pool.

The CAPP Permanent Secretariat in this organisational structure has a key role to play. The fact that only the Planning Sub-committee has been at all functional and that the other sub-committees are not functional at all must be rectified. These organisational sub-committees are essential because ultimately they support and advise the overall governance structure. These technical experts who come from the CAPP member country power utilities must analyse and make recommendations pertaining to all issues surrounding the drafting of a joint policy to develop, maintain and update joint procedures and operating rules for the technical, operational and environmental aspects of the CAPP.

As well as the Planning Sub-committee there must be:

nnnn An Operations Sub-committee, and

nnnn An Environmental Sub-committee.

5.2.2 The Requirements Relating to National Regulations

The industrial organisation of electricity markets in the CAPP member countries consists mainly of vertically integrated national companies, even if in the majority of the countries the national power utility co-exists with independent power producers.

A regional electricity market does not require a specific industrial organisation to be effective. Nonetheless, it is essential for a certain number of agreements to be drawn up to govern cross-border trade, in particular:

nnnn Free access to reserve capacity on transmission networks,

nnnn An agreement on how to pay wheeling charges,

nnnn An agreement on assets/infrastructure that constitute the regional network and the terms of payment for using said assets/infrastructure (wheeling charges).

To date there are only three contracts in Central Africa regarding cross-border trade. This trade is conducted on the basis of bilateral contracts and there are no specific rules for regional trade. This aspect must be covered though the drafting of “Regional Market Rules” for power trade in the Central Africa region. These rules will be supplemented by regional wheeling charges.



5.2.3 Regional Standards

A bill for operating interconnected grids has been drafted and has been available since June 201119. This document has yet to be passed into law, but lays down the foundations for harmonising and applying regional standards.

5.2.4 Infrastructure Development

Since 2004, the CAPP has held the specific mandate from the Council of Ministers for Energy to develop infrastructure identified as Priority Integration Projects to lay the foundations for regional integration.

A regional master plan was drawn up in 200620 pby the CAPP, funded by USAID. This master plan identified the infrastructure to be developed and proposed different scenarios for funding and constructing this infrastructure as a first concrete step in building regional integration.

5.3 The Target Situation

The “target situation” corresponds to a situation where the CAPP member states have sufficient transmission infrastructure to begin negotiations in a market environment. This target situation in the case of Central Africa corresponds to two sequential periods21 :

nnnn Phase 1 (medium term): 2014 - 2019, which corresponds to the mobilisation of funding to study and complete at least all the PIPs and bring them all on line,

nnnn Phase 2 (long term): 2020-2030, during which the ECCAS member states will be in a position to trade on a market that has surplus generating capacity and sufficient transmission infrastructure.

5.3.1 Setting up of a Regional Market in the Medium Term: Phase 1

The first phase (2014 – 2019) to set up the regional electricity market in Central Africa will focus on:

i. The need for infrastructure construction, and

ii. The setting up of the missing institutions required to prepare Phase 2 of the regional market

1. Infrastructure construction must provide the region with sufficient transmission capacity and adequate generating capacity to have a sufficient surplus to be able to exceed its bilateral contracts,

2. Two institutions remain to be created. They must be prepared and set up during the 2014-2019 period in preparation for Phase 2 of the regional market creation:

19 Operating bill – Version dated June 2011.20 PCAPP – Master plan study for the implementation of an electricity market in Central Africa (2005 – 2025), Final Report – January 2006.21 It is essential not to lose sight of the fact that for the indicative deadlines associated with the market development phases to be trigge-red requires the minimum investment programme for the 15 PIP must be in place..



nnnl The first of these institutions is the Central Africa Regional Electricity Regulation Commission or Commission Régionale de Régulation de l’Électricité de l’Afrique Centrale (French acronym CORREAC), whose scope covers aspects associated with the preparations for developing regional power trade. The structure, responsibilities and powers of the regional regulator must be formally specified so it can supervise the drafting and recommendation of rules, the application of rules, decisions regarding pricing, consideration of the components of the regional master plan and conflict resolution.

nnnl An institution that assumes the role of regional market system operator to establish and integrate the technical rules for operating, managing and pricing cross-border power flows by:

nnn- Monitoring developments in the national electricity sector in the ECCAS member countries,

nnn- Periodically analysing the economic and technical viability of arrangements for cross-border power trade among users of the transmission network,

nnn- Maintaining and monitoring the technical performance of the power utilities,

nnn- Facilitating the drafting of technical standards and requirements to collect and process useful data.

5.3.2 Setting up of a Regional Market in the Long Term: Phase 2

The second phase (2020 – 2030) of regional market implementation or the long-term “target situation” is characterised by the following components:

i. The bringing into operation of all regional infrastructure associated with all the PIPs and the establishment of rules and conditions for pooling this infrastructure,

ii. The coming of age of the institutions that are now all in place,

iii. National regulations harmonised on a regional level.

1. The pooling within the regional market of the now operating infrastructure presupposes that::

nnnl Rules will have been agreed upon to share the costs and benefits of the regional PIPs that will now all be in operation, and that the terms and conditions for completing projects that are delayed will have been settled,

nnnl A planning process will have been set up that involves regional optimisation concepts and enables the member countries to take decisions regarding their respective national expansion plans in line with the regional plan.

2. From the institutional point of view, these will all have now been created and will be operational, fulfilling their role on a day-to-day basis. This requires that:

nnnl The governance structure (CAPP Permanent Secretariat and its bodies) has been set up and reached maturity in terms of supervising and coordinating market developments as well as making decisions on the main policy aspects,



nnnl The regional regulatory authority, CORREAC, is authorised to draw up market rules and standards, apply them and resolve conflicts among operators,

nnnl An institution has been attributed the role of Market System Operator and ensures the regional standards have been harmonised throughout the region and that all the countries comply with the minimum standards for operating, planning and constructing infrastructure/assets,

3. National regulations will have been harmonised on a regional level in the sense that they will now facilitate regional trade by means of free access to transmission capacity for grid users (third party access to networks).

5.4 Transition from the Current Situation to the Regional Market Target Situation

This concerns the path for transitioning from the current situation to the target situation. That is to say to a situation wherein the countries negotiate on an electricity market that has sufficient transmission infrastructure. This requires certain structured measures to be set up and implemented according to a set timetable.

Development of the regional market has been envisaged in two phases:

i. Phase 1: to 2019, when most of the regional transmission infrastructure should be operational.

ii. Phase 2: On the basis of preparatory tasks completed during Phase 1, this phase stretches from 2020 to 2030.

5.4.1 Phase 1 : 2014 - 2019

By 2019 most of the regional transmission infrastructure should be operational. The main tasks of this phase are as follows:

nnnl Development of a training programme with the following objectives:

nnn- To build project management and power infrastructure project management capacities

nnn- To build the capacities of existing regional institutions, particularly the CAPP, to be able to carry out the activities required for implementing, operating and monitoring the regional market,

nnnl Formalisation of trade transactions which are currently executed on a “case-by-case” basis and standardisation of procedures such as::

nnn- Bilateral agreements between countries and between regional companies,

nnn- Trade instruments (types of contract, short-term trade).

nnnl Wheeling charges agreed upon by the parties.

nnnl Coordination of regional trade



nnn- Agreement on a “harmonisation path” towards regional operating standards and procedures as specified in the regional operating code,

nnn- Agreements to be signed with the various Transmission Network Management authorities in the member states to draw up a plan enabling them to comply with regional standards.

nnnl Preparation for the following phase:

nnn- Finalisation of the preparation and setting up of the regional regulatory commission (CORREAC),

nnn- Preparations to create the institution that will play the role of regional market system operator.

This Phase 1 corresponds in fact to the “current” situation. Trade cannot really be envisaged for the moment as the current market does not yet exist. As a result, completion of the tasks listed above constitutes a prerequisite for Phase 2.

5.4.2 Phase 2 : 2020 - 2030

Phase 2: On the basis of all the preparations carried out during Phase 1, during the period 2019 to 2030, it will be possible to focus specifically on:

nnnl Developing a training programme to:

nnn- Build the capacities of national power utilities to effectively operate the market and power trade in a regional context.

nnnl Bilateral agreements on transit across third-party countries using standardised trade instruments,

nnnl The first short-term trade transactions over the market and not solely via bilateral agreements,

nnnl Regional wheeling charges,

nnnl The functions of the regional market system operator

nnnl A longer-term vision with a liquid regional market with more sophisticated trade transactions (day-ahead, dynamic trade etc.)



CAPP ACTION PLAN FOR THE REGIONAL ENERGY POLICY STRATEGY6



6 CAPP Action Plan for the Regional Energy Policy Strategy

The objective of the action plan is to identify a panel of activities that constitute a strategic plan which by executing it, the CAPP will accomplish its main mission, which is to cover the two fundamental aspects associated with the ECCAS energy policy:

nnnn Play a key role in meeting the conditions required to carry out regional infrastructure projects,

nnnn Facilitate the harmonious development of the regional market effectively and in compliance with the objective of developing cross-border trade and providing reliable and affordable electricity to the general public and to industrial investors.

The CAPP was created in 2003 and has worked since then without any real strategic plan. It must now regroup to fully assume its mandate on the basis of carrying out the activities to achieve the expected results and hence its strategic objectives. This includes the specification of a response to the strategic review and the identification of the risks that have been carried out. All causes of delays and/or obstacles to the CAPP fulfilling its mission.

6.1 The Fundamental Issue of CAPP Resources

As highlighted in this document, the Permanent Secretariat plays a pivotal role in the CAPP institutional framework. It is therefore essential that it be able to resolve financial difficulties and issues around financial resources without which the transition to a regional market is difficult to envisage.

The actions recommended above and which constitute the strategic plan presuppose that the constraints associated with a lack of human and financial resources to adequately monitor and implement the activities will be overcome

6.1.1 Financial Resources

Reference is made here to the financial risk. The CAPP must be able to generate the funding it requires to function and carry out its activities on a lasting basis.

The current internal funding mechanism of the CAPP can essentially be summarised as the funding of the Permanent Secretariat’s operating budget (salaries, office equipment and supplies, organisation of meetings of its statutory bodies and of the technical sub-committees). This budget allocation is set annually by the Council of Ministers for Energy and distributed among the member states and the national power utilities. The money comes from the conventional system of contributions from national budgets.



This mechanism has two major disadvantages:

1. The actual level of budgetary spending is, in almost all cases, below the contributions voted on and insufficient for requirements with regard to implementation of the mandatess22 ;

2. It transpires from past experience that the irregularity of income constitutes one of the major characteristics of the mechanism due to the delays in receiving contributions.

Furthermore, all the other activities of the Permanent Secretariat (studies and project supervision) depend totally on external financing. On average, external contributions represent 70% of the resources assigned to the CAPP.

The response to these structural weaknesses identified in the funding of the CAPP lies in the proposal of an autonomous financing mechanism for the CAPP23 which has already been adopted by the Council of Ministers for Energy and which is currently awaiting formal approval by the ECCAS Conference of Heads of State and Government.

This mechanism consists in setting up a CAPP fund to develop the electricity sector fed by a levy on power consumption in the member states. It should be noted that this levy on the power bill is already in place in Cameroon and in CAR to finance their regulatory agencies.

This CAPP electricity sector development fund will be able to cover all the day-to-day operating costs of the Permanent Secretariat, but also project technical studies and even some feasibility studies.

However, it goes without saying that in the long term and when the regional market is completely functional the CAPP structural costs will be covered by a tax on cross-border power trade.

6.1.2 Human Resources

This refers to the risk of execution or implementation. The availability of sufficient, competent human resources is at the heart of the Permanent Secretariat’s capacity to supervise the studies and implement the infrastructure projects. The lack of technical expertise within the CAPP operational bodies has been identified. As already mentioned, it constitutes a major handicap for the contribution and/or supervision of the development of interconnection projects which involve, by their very nature, complex technical infrastructure.

The solution currently adopted consists in selecting experts chosen by the stakeholder countries in the project concerned to monitor execution of the studies or the coordination of project implementation. This involves:

nnnn Setting up a Steering Committee and a Technical Monitoring Committee as regards the studies and the coordination of the activities of the consultants recruited for these tasks, as in the case of the Chad - Cameroon interconnection,

nnnn The creation of a management unit or a national execution agency dedicated to implementing the infrastructure project, as in the case of the development of INGA 3 Low Falls.

22 The contributions received with regard to those agreed are on average 47.4% from 2004-2006 and 69.4% from 2006-200823 ONU-CEA-BSR/AC – Study of an autonomous financing mechanism for the CAPP, May 2010 – Revision by CAPP in 2011.



In both the above cases, the implementation risk associated with the Technical Monitoring Committee or the Management Unit is clearly highlighted by the donors24. This type of structure is based on entities newly created for this purpose. They do not have any background in monitoring and/or implementing projects which are, by definition, complex. Furthermore, the African Development Bank for instance also mentions the initially high fiduciary risk due to the fact that this type of “execution agency” is not yet totally operational, and therefore its capacity to properly manage the financial aspects of the project cannot really be assessed beforehand.

The response recommended to best mitigate the implementation risk and the fiduciary risk in the case of all regional power integration infrastructure projects is based on two complementary components :

1. Firstly, the CAPP should explicitly be retained as the main interlocutor and Project Manager for regional energy integration infrastructure,

2. To avoid delays in project implementation, and to bring specific improvements in terms of capacity building, capitalisation on past experience and financial management, two types of legal entity dedicated to monitoring and implementation of the projects are recommended :

i. Project companies, which are companies under private law set up specifically for the project in question by their shareholders and the specific nature of which will be determined by the type of infrastructure to be constructed,

ii. An international organisation which is set up via treaty or agreement signed among several countries. It is usually administered by an assembly of representatives of the member states who adopt the main guidelines of the organisation and an executive body which is responsible for implementing them.

The results of the detailed comparative analysis carried out of project companies and international organisations recommend the project company option which has the advantage of ensuring an effective and rapid implementation of infrastructure projects while capitalising on the expertise of the experts it recruits for their specific skills.

The project company approach counteracts the negative points associated with the existing approach to project implementation such as a lack of harmonisation of individual country priorities and the permissive coordination and management of these projects.

6.2 The Risk Matrix and the SWOT Analysis

6.2.1 The Risk Matrix

The CAPP Permanent Secretariat plays a central role and as such, a PESTLE analysis highlighted the external factors liable to influence the way in which it will be able to carry out its activities and accomplish its mission. This made it possible in the context of the strategic planning process to draw up the following risk matrix :

24 African Development Bank – Support for the development of the INGA site and access to electricity – Project Evaluation Report, October 2013.



Table 8: Strategy Implementation Risk Matrix

DESCRIPTION AND EF-FECT MITIGATION MEASURE ATTRIBUTION

Implementation Risk

Implementation suffers from lack of collaboration

among stakeholders within countries

Strong focused support from CAPP bodies (Management

Committee).

Power utilities concerned and hence the project

companies created

Political RiskNew governmental

priorities not aligned with regional projects

Very strong commitment at the highest political level in

the member countries

ECCASNational Governments

Legal RiskNational parliaments do

not approve electrical system reform measures

Lobbying of CAPP bodies (Executive Committee +

Council of Ministers).

ECCASNational Governments

Financing Risk

Not all national contributions received to

fund CAPP activities

Independent financing mechanism for the CAPP in the pipeline for adoption by the Conf. of Heads of State

and Government

CAPP

6.2.2 SWOT Analysis

An analysis of the Strengths – Weaknesses – Opportunities – Threats (SWOT) of the CAPP was carried out to assess the activities and tasks carried out to date by both the CAPP and the member utilities. The aim of this analysis is to be able, via the action plan to be proposed subsequently, to convert the weaknesses into strengths and to mitigate the risks identified.

The SWOT analysis is summarised in the table below.

Tableau 9 : CAPP SWOT Analysis

STRENGTHS WEAKNESSESClear, unambiguous attibutes assigned by the ECCAS to the CAPP to make it a specialised agency responsible for establishing the regional electricity market in Central Africa.

Non-functionnal Sub-committees which lead to a lack of technical expertise within the CAPP operational bodies. This constitutes a major set back for supervising interconnection projects.

An explicit mandate for the Council of Ministers for Energy to lead infrastructure development and specifically to supervise and implement the regional Priority Integration Projects.

CAPP financing is dependant on member state and power utilities’ contributions, whit often delays implementation.

Existence and availability of regional planning studies that constitute the foundation for optimising medium- and longterm investment plans

Need to establish systematic modalities to build skills and expertise among professionnals in the member countries concerned.

OPPORTUNITIES MENACESStrong internal and external pressure for Central Africa to promote its huge hydro-electric potential

Urgent need to harmonise national legislation and regulations and to standardise the agreements required for the regional market to function.



Hydroelectricity is a renewable energy and thus constitutes a major asset in terms of reducing greenhouse gas emissions and hence for mobilising financing.

Urgent need to adapt eh organisation of power utilities to enable third party access to networks and to move from bilateral contracts to trade transactions.

Excellent willingness of international donors to finance regional integration projects under the supervision of the CAPP permanent secretariat (the specialised regional agency).

Urgent need to adapt profitable pricing systems to be able to guarantee sufficient cash-flow and profitability of capital invested in PPP.

A business model for leading studies and implementing projects (CP, CTSP, etc.) that does not in itself capitalise on past experience and achievements. Need to set up project companies under CAPP supervision.

6.3 The Action Plan

The recommended actions are divided into the five categories of the results-oriented strategic objective prioritisation matrix:

1. Assistance to develop generating and transmission infrastructure

2. Institutional Capacity Building

3. Creation of a legislative and regulatory environment

4. Establishment of trade rules and a regulatory framework

5. Establishment and interpretation of technical operating rules

The actions are then structured in main activities and sub-activities in:

nThe short to medium term (5 years), from 2014 to 2019.

nThe long term from 2020 to 2030.

6.3.1 Phase 1 : 2014 - 2019



Supe

rvisi

on b

y th

e CA

PP a

s Pro

ject

Man

ager

of

the

exte

nsio

n of

regi

onal

pow

er tr

ansm

issio

n in

fras

truc

ture

thro

ugh

the

com

pleti

on o

f all

PIP

MAI

N A

CTIV

ITY

1. D

evel

opm

ent o

f pow

er g

ener

ating

and

tran

smis

sion

infr

astr

uctu

re (P

IP)

7. S

CADA

revi

ew a

t the

end

of t

he p

erio

d to

n un

ders

tand

how

pow

er tr

ade

syst

ems w

ork

and

the

prob

lem

s ass

ocia

ted

with

the

regi

onal

el

ectr

icity

mar

ket.

com

préh

ensio

n de

la

dyna

miq

ue d

e fo

nctio

nnem

ent d

es S

ystè

mes

d’

Écha

nges

Éne

rgéti

ques

et d

es p

robl

émati

ques

as

soci

ées a

u m

arch

é ré

gion

al d

e l’é

lect

ricité

.

6. E

valu

ation

of t

he P

roje

ct M

anag

er a

nd th

e pr

ovisi

on o

f ass

istan

ce to

pro

ject

impl

emen

tatio

n as

rega

rds t

he C

APP’

s con

trib

ution

to P

IP

impl

emen

tatio

n an

d th

e fa

ir di

strib

ution

of

inve

stm

ents

bet

wee

n no

w a

nd 2

020

to e

stab

lish

a re

gion

al m

arke

t im

plim

plem

enta

tion

A qu

ant

à la

con

trib

ution

du

PEAC

qua

nt à

la m

ise e

n œ

uvre

des

PIP

et à

la ré

parti

tion

équi

tabl

e de

s in

vesti

ssem

ents

à ré

alise

r à l’

hrizo

n 20

20 p

our

l’éta

bliss

emen

t du

mar

ché

régi

onal

.

5. C

reati

on o

f pro

ject

com

pani

es a

nd in

the

first

inst

ance

pro

ject

com

pani

es fo

r the

prio

rity,

i.e

. the

Com

eroo

n- C

had

inte

rcon

necti

on a

nd

the

Inga

-Cab

inda

-Poi

nte

Noi

re in

terc

onne

ction

fo

cusin

g av

aila

ble

skill

s and

fina

ncia

l res

ourc

es

on th

ese

prio

rities

. Setti

ng u

p of

the

proc

edur

e to

form

alise

the

rela

tions

bet

wee

n th

e Pr

ojec

t M

naag

er (C

APP

Perm

anet

n Se

ceat

aria

t) a

nd th

e Im

pem

ente

rs (P

roje

ct c

ompa

nies

). on

necti

ons,

i pr

iorit

prio

riryp

riorit

yint

erco

nnec

tions

, i

4. D

evel

opm

ent o

f a p

lan

to su

ppor

t PIP

im

plem

enta

tion

so th

at th

e effi

cien

cy o

f the

CAP

P co

ntrib

ution

as P

roje

ct M

anag

er in

exp

andi

ng

this

regi

onal

infr

astr

uctu

re c

an b

e m

onito

red

and

asse

ssed

, with

a v

iew

to p

ropo

sing

fair

inve

stm

ent

spre

ad o

ver ti

me

and

arou

nd th

e re

gion

.

3. O

rgan

isatio

n by

the

Proj

ect M

anag

er o

f a

Dono

r Rou

nd T

able

to se

cure

fina

ncin

g to

co

nstr

uct t

he in

fras

truc

ture

secti

ons a

long

the

Sout

h-N

orht

bac

kbon

e [M

aque

a D

o Zo

mbo

(A

ngol

a) -

Mem

ve’é

lé (C

amer

oon)

] so

the

natio

nal

gene

ratin

g ca

paci

ty o

f the

cou

ntrie

s cro

ssed

by

this

regi

onal

inte

rcon

necti

on c

an b

e ex

ploi

ted.

2. L

obby

ing

ECCA

S to

supp

ort t

he ra

pid

adop

tion

of a

uton

omou

s fian

cing

for C

APP

such

that

the

CAPP

itse

lf bu

t also

the

proj

ect c

ompa

nies

can

fu

nctio

n (H

R an

d fin

anci

al re

sour

ces)

.

1.

Lobb

ying

ECC

AS so

that

CAP

P bo

dies

ado

pt

the

REPS

P pr

epar

ed w

ith c

ount

ry e

xper

ts a

nd

impl

emen

t its

pro

posa

ls, re

cogn

ising

in p

artic

ular

th

e CC

AP P

erm

anen

t Sec

reat

riat’s

stat

us a

s Pr

ojec

t Man

ager

for t

he C

APP

and

the

crea

tion

of

proj

ect c

ompa

nies

to d

evel

op th

e PI

P.

SUB-

ACTI

VITI

ES

Teac

hing

tool

to u

se S

ADA

softw

are

to m

onito

r cr

oss-

bord

er tr

ade

from

an

oper

ation

al p

oint

of

vie

w a

nd fa

cilia

tion

of c

oord

inati

on w

ith

tran

smiss

ion

oper

ator

s in

the

mem

ber s

tate

s.

Esta

blish

men

t of a

dat

abas

e of

per

form

ance

in

dica

tors

to m

onito

r and

eva

luat

e th

e CA

PP

supr

a-na

tiona

l rol

e as

Pro

ject

Man

ager

.

Proj

ect c

ompa

ny c

hart

er, r

egio

nal m

aste

r pla

n,

deci

sions

, fea

sibili

ty st

udie

s, G

IS d

ata

base

.

Upt

ade

regi

onal

pow

er m

aste

r pla

n fo

r de

velo

ping

infr

astr

uctu

re a

nd n

ation

al p

ower

m

aste

r pla

ns re

quire

d to

est

ablis

h a

natio

nal

elec

tric

ity m

arke

t giv

ing

prio

rity

to th

e 15

PIP

.

Soft

war

e to

asc

erta

in p

ricin

g le

vels

and

fina

ncia

l flo

ws f

or e

ach

of th

e m

embe

r sta

tes’

pow

er

syst

ems.

EQU

IPM

ENT,

SO

FTW

ARE,

TO

OLS

Prov

ision

al b

udge

t : 2

00,0

00 U

SD.

Incl

uded

in th

e ev

alut

ation

of P

IP p

refe

renc

e co

sts

Prov

ision

al b

udge

t :

1 to

2 m

illio

ns U

SD/

year

for s

tudi

es1

to 2

mill

ions

US

D/ y

ear f

or c

onst

rutio

n co

ntro

ls

Prov

ision

al b

udge

t : 1

00,0

00 to

150

,000

USD

.

SPEC

IFIC

CO

STS

THe

prov

ision

al b

udge

t allo

ws f

or th

e co

st o

f eq

uipm

ent a

cqui

sition

and

trai

ning

in h

ow to

us

e it.

It a

lso in

clud

es th

e co

st o

f exi

sting

SCA

DA

audi

ts, i

n ot

her w

ords

aro

und

50 p

eron

-day

s.

The

prov

ision

al b

udge

ts m

ust b

e fu

nded

for a

yea

r pe

riod.

This

roun

d ta

ble

mus

t tak

e pl

ace

in th

e fir

st h

alf o

f 20

15, i

ts lo

catio

n re

mai

ns to

be

deci

ded.

COM

MEN

TS



As supra-national Project Promoter/m

anager, CAPP’s direct and indirect hum

an resources must

have sufficient skills to fulfil their m

issions

MAIN

ACTIVITY


7. Setting up of an audit task force to m

onitor skills

6. Setting up of an audit task force to m

onitor technical perform

ance

5. Provision of interpreting and translation services and revision of regional docum

ents and checking of different language versions of agreem

ents, treaties and contracts (French, English, Portuguese and Spanish) on behalf of the CAPP Perm

anent Secretariat.

4. Formulation and im

plementation of the

CAPP Permanent Secretariat com

munication

policy (participate in the specification of a com

munication strategy, prom

ote the actions of the CAPP both internally and externally, support focal points and experts from

mem

bers states in conducting their regionally-focused com

munication actions).

3. Building capacities in line with taking

ownership of the Central Africa Regional

Electricity Market operating law, i.e. to be able

to conduct the activities key to implem

entation, operation and m

onitoring of a regional market.

2. Building capacities in project managem

ent and m

anagement of pow

er infrastructure: learning / consolidation of skills in pow

er infrastructure project m

anagement to m

onitor the regional electricity m

aster plan and the national electricity m

aster plans of the mem

ber states.

1. Reactivation of the Planning Sub-comm

ittee and setti

ng up of Operating and Environm

ent Sub-com

mittees to that all can com

e into operation over the 2014-2019 period (program

me of

activities, operating budget etc.).

SUB-ACTIVITIES

- Teaching tool to use SCADA software to run and

maintain electricity system

s - Digital sim

ulator to operate and test sub-stations and protection &

analogue simulator for

running transmission netw

orks - Training courses in the operation and m

aintenance of interconnected electricity systems

- IT and video conferencing hardware and

software on infrastructure project m

anagement

and project oversight. - Training courses in construction engineering / construction project m

anagement / project

planning software / construction project

databases

- Programm

e of activities set by the Project M

anager (CAPP Permanent Secretariat)

EQU

IPMEN

T, SOFTW

ARE, TOO

LS

Interpreting/Translation Unit operating costs

Comm

unication Unit operating costs

Provisional budget: 300,000 USD

Provisional budget: 150,000 USD

Provisional operating budget: 150,000 to 200,000 U

SD per year SPECIFIC COSTS

The provisional budget allows for the acquisition

of materials and equipm

ent, the cost of training to use them

and support of utility operators not equipped w

ith SCADA.

The provisional budget allows for the acquisition

of materials and equipm

ent and the cost of training people to use them

.

Num

ber of sub-comm

ittee meetings and

associated travel depending on programm

e of activities and need for Project M

anager input.

COM

MEN

TS



Harm

onisa

tion

of n

ation

al re

gula

tions

and

ex

isten

ce o

f leg

al p

rovi

sions

ess

entia

l for

the

deve

lopm

ent o

f the

regi

onal

mar

ket.

MAI

N A

CTIV

ITY

3. C

reati

on o

f a re

gula

tory

and

legi

slati

ve e

nviro

nmen

t

4. M

onito

ring

prog

ress

of t

he c

omm

issio

ning

of

the

PIP

and

esur

ing

the

legi

slato

ry a

nd re

gula

tory

do

cum

ents

are

in li

ne w

ith th

e sit

uatio

n an

d ne

eds o

f the

regi

onal

mar

ket.

3. A

ssist

ance

of m

embe

r sta

tes i

n ad

optin

g bi

lls

nece

ssar

y fo

r har

mon

isatio

n an

d th

e ad

optio

n of

the

fund

amen

tal p

rinci

ples

for s

etting

up

the

regi

onal

mar

ket.

2. D

rafti

ng o

f bill

s to

be p

asse

d by

the

mem

ber

stat

es w

ith th

e pr

epar

ation

of a

road

map

to

set u

p, if

nec

essa

ry, a

ny re

quire

d lig

islat

ory

or

regu

lato

ry m

odifi

catio

ns.

1. R

evie

w o

f nati

onal

regu

latio

ns a

nd se

tting

up

of a

dat

a ba

se o

f leg

islati

on a

nd re

gula

tory

do

cum

ents

and

any

oth

er d

ocum

ents

of r

elev

ance

to

the

regi

onal

mar

ket.

SUB-

ACTI

VITI

ESDo

cum

enta

ry a

nd a

rchi

ve d

atab

ase

man

agem

ent

hard

war

e an

d so

ftwar

e.

EQU

IPM

ENT,

SO

FTW

ARE,

TO

OLS

Cann

ot b

e es

timat

ed a

t thi

s sta

ge

Prov

ision

al b

udge

t : 1

20,0

00 U

SD.

Prov

ision

al b

udge

t : 1

400

,000

USD

.+

tran

slatio

n 30

,000

USD

Prov

ision

al b

udge

t : 1

50,0

00 U

SD in

clud

ing

tran

slatio

n co

sts (

FR- E

n - S

p - P

ort)

+ c

ost o

f on-

line

data

stor

age

with

ded

icat

ed e

xtra

net a

cces

s.

SPEC

IFIC

CO

STS

The

CAPP

has

a fu

ndam

enta

l coo

rdin

ation

role

to

play

and

its l

awye

r mus

t mon

itor P

IP p

rogr

ess.

Coor

dina

tion

of th

e w

ork

of th

e CA

PP la

wye

r with

th

e su

ppor

t of a

loca

l con

sulta

nt to

ens

ure

the

mem

ber s

tate

s fol

low

the

proc

ess t

o ad

opt t

he

bills

at e

xecu

tive

and

legi

slativ

e le

vels.

Step

to b

e ca

rrie

d ou

t in

clos

e co

llabo

ratio

n be

twee

n CA

PP P

erm

anen

t Sec

reta

riat a

nd

mem

ber s

tate

s con

cern

d to

ens

ure

succ

ess.

It is

pl

anne

d fo

r an

inte

rnati

onal

lega

l con

sulta

nt to

su

ppor

t the

CAP

P.

The

CAP

P Pe

rman

ent s

ecre

taria

t mus

t mai

ntai

n an

d up

date

this

on-li

ne le

gal d

atab

ase.

COM

MEN

TS



Finalisation of the legal and institutional structure and preparation for setti

ng up the CORREAC

Development of draft inter-country and/or

inter-stakeholder trade agreements, in particular

according to the type of PIP (intra-regional/inter-regional) and the regional m

arket law.

ACTIVITÉ PRINCIPALE

4. Establishment of trade rules and regulatory fram

ework

4. Review and analysis of the different types of

contracts and contract negotiation strategies and techniques»

3. Approval of the regional master plan and

harmonisation of regulatory rules for the PIP in

the pipeline.

2.2. Operating m

ode of the regional regulator: supervision of drafting and recom

mendation of

rules, application of rules, consideration of how

to deal with issues such as w

heeling charges and conflict resolution betw

een operators.

1. Review of national regulations in m

embers

states and lessons to be learned for regional regulation. Specification of the structure, responsibilities, operating m

ode and powers of the regional

regulator.

4. Setting up of m

echanisms for operators and

stakeholders to take ownership of the regional

market law

3. Alignment of trade agreem

ents and instrum

ents with the Central Africa regional

electricity market law

2. Formalisation of trade currently done on

a «case-by-case» basis and standardisation of procedures such as: - bilateral agreem

ents between both countries

and regional companies,

- trade instruments (types of contract, short-term

trade).

1. Review of the types of agreem

ent that exist for interconnections:- Identification of tem

plate contracts/agreements

and overarching principles to be validatedby m

ember states

- Drafting of template interconnection contracts/

agreements for m

ember states to use

SOU

S ACTIVITÉS

Teaching sheets and educational software on

trade negotiation and contracting techniques

ÉQU

IPEMEN

TS, LOGICIELS, O

UTILS

COÛ

TS SPÉCIFIQU

ESThe CAPP should m

aintain a database of the different existing agreem

ents

OBSERVATIO

NS



Prep

arati

on to

coo

rdin

ate

oper

ation

s and

trad

e at

re

gion

al le

velM

AIN

ACT

IVIT

Y

5. E

stab

lishi

ng a

nd in

terp

retin

g te

chni

cal r

ules

for o

pera

tions

5. P

repa

ratio

n to

set u

p a

syst

ems o

pera

ting

insti

tutio

n

4. T

echn

ical

upg

rade

aud

it

3. S

kils

Upg

rade

aud

it

2. E

valu

ation

aud

it of

bas

ic e

lect

ricity

syst

ems

(ski

lls, p

roce

dure

s, a

dmin

istra

tion

and

mai

nten

ance

of S

CADA

etc

.)

Ev

alua

tion

of g

aps b

etw

een

loca

l ope

ratin

g pr

oced

ures

and

the

regi

onal

ope

ratin

g la

w

1. E

stab

lishi

ng a

nd in

terp

retin

g te

chni

cal r

ules

, op

erat

ors t

ake

owne

rshi

p of

the

2011

ope

ratin

g la

w

SUB-

ACTI

VITI

ES

Org

anisa

tiona

l not

es,

Ope

ratin

g an

d m

aint

enan

ce g

uide

lines

Org

anisa

tiona

l doc

umen

ts &

job

shee

ts &

HR

polic

y an

d ot

her t

rain

ing

& e

mpl

oym

ent p

lans

Not

es o

n or

gani

sing

basic

ele

ctric

ity sy

stem

s and

ex

isting

pro

cedu

res

Code

d’E

xplo

itatio

n.O

pera

ting

law

EQU

IPM

ENT,

SO

FTW

ARE,

TO

OLS

Prov

ision

al b

udge

t ar

ound

100

,000

USD

Prov

ision

al b

udge

t ar

ound

70,

000

to 8

0,00

0 U

SD

SPEC

IFIC

CO

STS

Cost

of t

echn

ical

leve

l eva

luati

on a

udits

Cost

of s

kills

eva

luati

on a

udits

Cost

of e

valu

ation

aud

its o

f bas

ic e

lect

ricity

sy

stem

s - a

roun

d 50

per

son-

days

Ope

ratin

g co

sts f

or m

issio

ns e

ntru

sted

to th

e O

pera

tions

Sub

-Com

mitt

ee

COM

MEN

TS



6.3.2 La phase 2 : 2020 - 2030



Proj

ect c

ompa

nies

’ tra

inin

g pe

riod

com

plet

ed.

Mov

e to

inde

pend

ent Q

HSE

oper

ation

al m

ode

unde

r CAP

P co

ntro

l.

MAI

N A

CTIV

ITY

1. D

evel

opm

ent o

f pow

er g

ener

ating

and

tran

smis

sion

infr

astr

uctu

re (P

IP)

7. H

arm

onisa

tion

of d

ocum

ent m

anag

emen

t sy

stem

s to

prep

are

for t

he tr

ansf

er o

f in

fras

truc

ture

to th

e op

erat

or u

nder

the

auth

ority

of

the

Ope

ratio

ns S

ub-c

omm

ittee

6. I

mpl

emen

tatio

n of

SCA

DA a

ction

pla

ns

5. A

rbitr

ation

of fi

nanc

ial a

nd h

uman

reso

urce

s am

ong

proj

ect c

ompa

nies

in li

ne w

ith P

IP

deve

lopm

ent a

nd a

t the

beh

est o

f the

CAP

P. 4

. Eva

luati

on o

f effe

ctive

ness

of C

APP

cont

ributi

on (s

upra

natio

nal P

roje

ct M

anag

emen

t)

as re

gard

s the

impl

emen

tatio

n of

PIP

and

the

fair

dist

ributi

on o

f inv

estm

ents

3. A

udit

of g

ener

ating

pla

nt re

habi

litati

on a

nd

cons

truc

tion

proj

ects

car

ried

out d

urin

g Ph

ase

1 w

ith re

view

of p

rioriti

es b

y CA

PP

2. I

nstit

ution

nalis

ation

of p

roje

ct c

ompa

ny

repo

rting

, setti

ng u

p of

a fe

edba

ck lo

op to

lear

n fr

om p

ast e

xper

ienc

e un

der t

he a

utho

rity

of th

e Pl

anni

ng S

ub-c

omm

ittee

and

CAP

P co

ntro

l.

1. Q

HSE

audi

t of p

roje

ct c

ompa

nies

and

pro

posa

ls fo

r im

prov

emen

ts u

nder

the

auth

ority

and

su

perv

ision

of t

he C

APP

SUB-

ACTI

VITI

ESEQ

UIP

MEN

T, S

OFT

WAR

E, T

OO

LSSP

ECIF

IC C

OST

SCO

MM

ENTS



HR skills consolidated and strengthened to supervise the increase in regional pow

er trade via the integrated electricity system

s during the integration phase

MAIN

ACTIVITY


5. Evaluation of the operating law and update

under the supervision of the Operations Sub-

comm

ittee

4. Building of collective and organisational capacities of the entities responsible for the integrated electricity system

s.

3. Building of collective and organisational capacities of the entities responsible for the integrated electricity system

s.

2. Upgrading of protection system

s, automatic

systems and transm

ission systems in line w

ith recom

mendations from

the technical audit (Phase 1 - Sub-activity 4)

1. Building of individual operator capacities in line w

ith recomm

endations from the HR audit

(Phase 1 - Sub-activity 5)

SUB-ACTIVITIES

EQU

IPMEN

T, SOFTW

ARE, TOO

LSSPECIFIC CO

STSCO

MM

ENTS



Harm

onisa

tion

of n

ation

al re

gula

tions

and

ex

isten

ce o

f leg

al p

rovi

sions

ess

entia

l for

the

deve

lopm

ent o

f the

regi

onal

mar

ket

MAI

N A

CTIV

ITY

3. C

reati

on o

f a re

gula

tory

and

legi

slati

ve e

nviro

nmen

t

3. A

dopti

on, i

f nec

essa

ry, o

f mod

ified

bill

s be

ginn

ing

with

the

refo

rm o

f reg

iona

l leg

islati

on

and

then

mov

ing

on to

nati

onal

law

s

2.

Verifi

catio

n in

real

tim

e as

the

PIP

com

e on

line

of t

he a

lignm

ent o

f leg

al p

rovi

sions

w

ith th

e re

aliti

es a

nd n

eeds

of t

he re

gion

al

mar

ket,

if ne

cess

ary

mak

e su

gges

tions

and

re

com

men

datio

ns fo

r any

nec

essa

ry a

just

men

ts in

co

ordi

natio

n w

ith m

embe

r cou

ntrie

s

1. R

evie

w o

f sui

tabi

lity

of re

gion

al a

nd n

ation

al

legi

slatio

n in

ligh

t of t

he a

ctua

l situ

ation

and

ne

eds o

f the

regi

onal

mar

ket f

ollo

win

g en

try

into

pr

oduc

tion

of th

e PI

P

SUB-

ACTI

VITI

ESEQ

UIP

MEN

T, S

OFT

WAR

E, T

OO

LS

Cann

ot b

e as

sess

ed a

t thi

s sta

ge

Non

éva

luab

les à

ce

stad

e.

Non

éva

luab

les à

ce

stad

e.

SPEC

IFIC

CO

STS

It w

ould

be

advi

seab

le to

use

a n

ation

al

cons

ulta

nt to

hel

p th

e CA

PP la

wye

r mon

itor

impl

emen

tatio

n of

the

nece

ssar

y re

form

s.

It is

prob

able

that

lega

l adj

ustm

ents

will

be

nece

ssar

y as

the

mar

ket m

atur

es. I

t wou

ld b

e ad

visa

ble

to u

se th

e se

rvic

es o

f an

inte

rnati

onal

co

nsul

tant

but

this

shou

ld b

e as

sess

ed fu

rthe

r do

wn

the

line.

This

revi

ew sh

ould

be

cond

ucte

d by

an

inte

rnati

onal

con

sulta

nt in

coo

rdin

ation

with

th

e CA

PP la

wye

r acc

ordi

ng to

a ti

met

able

to

be d

efine

d de

pend

ing

on th

e co

mpl

exity

of t

he

elem

ents

set u

p be

fore

hand

COM

MEN

TS



CORREAC.

MAIN

ACTIVITY

4. Establishment of trade rules and regulatory fram

ework

5. Coordination and monitoring by the CAPP of

the action plan and the roadmap to create and

launch the CORREAC

4. Organisation of sem

inars so the mem

ber states can take ow

nership of the process with a view

to adopting an action plan and a road m

ap

3. Draft comm

unity agreement and other

documents required for the CO

RREAC to function, including the basic principles regarding the legal structure of the inter-country regulatory body, the com

position and operation of its components,

guarantees of independence and of course technical and financial resources

2. Analysis of the optimal institutional structure

to manage interconnected netw

orks on the basis of contracts from

Phase I

1. Presentation in laymans term

s of the tools prepared in Phase 1 to m

ember states and sector

stakeholders M

onitoring and coordination of the use by m

ember states and stakeholders of

interconnection agreements/contracts

SUB-ACTIVITIES

EQU

IPMEN

T, SOFTW

ARE, TOO

LSSPECIFIC CO

STSCO

MM

ENTS



Coor

dina

tion

of tr

ade

MAI

N A

CTIV

ITY

5. E

stab

lishi

ng a

nd in

terp

retin

g te

chni

cal r

ules

for o

pera

tions

6. P

lace

the

SEIA

C sy

stem

ope

rato

r und

er a

n in

tegr

ated

man

agem

ent s

yste

m (Q

HSE)

5. A

udit

of fi

nanc

ial,

hum

an a

nd o

rgan

isatio

nal

reso

urce

s of t

he S

EIAC

and

pro

posa

l of

impr

ovem

ents

4. T

rans

fer o

f int

egra

ted

elec

tric

ity sy

stem

s to

the

SEIA

C

3. O

rgan

isatio

n of

a si

ngle

cen

tral

ised

Syst

em

Ope

rato

r

2.

Mon

itorin

g of

the

SCAD

A ac

tion

plan

1.

Prom

otion

of t

he o

pera

ting

law

SUB-

ACTI

VITI

ESEQ

UIP

MEN

T, S

OFT

WAR

E, T

OO

LSSP

ECIF

IC C

OST

SCO

MM

ENTS



APPENDIX: PIP LIST AND COSTS7



N°

PIP

Nam

eBu

dget

Stud

ies

Wor

kCo

mm

ents

1De

velo

pmen

t of D

jiblo

ho (E

q. G

uine

a)PR

OJE

CT A

LREA

DY

IMPL

EMEN

TED

WIT

H E

Q. G

UIN

EA F

UN

DIN

G C

URR

ENTL

Y O

PERA

TIN

G

2De

velo

pmen

t of I

NGA

site

and

ass

ocia

ted

inte

rcon

necti

ons

15 m

illio

n U

SD12

.6 b

illio

n U

SDTh

e co

st o

f wor

k co

ncen

s IN

GA 3

Low

Fal

ls

3In

ga -

Cabi

nda

- Poi

nte

Noi

re in

terc

onne

ction

1.3

mill

ion

USD

230

mill

ion

USD

"STU

DIE

S CA

RRID

OU

T BY

FIC

HTN

ER A

ND

AW

AITI

NG

VAL

IDAT

ION

BY

CAPP

AF

DB

FIN

ANCI

NG

"

4Ca

mer

oon

- Cha

d gr

id in

terc

onne

ction

s2.

5 m

illio

n U

SD12

5 m

illio

n U

SD"S

tudi

es b

egui

n De

cem

ber 2

014

Plan

ned

dura

tion

19 m

onth

s, in

clud

ing

tend

er fi

les"

5Hy

droe

lect

ric d

evel

opm

ent o

f Dim

oli &

ass

ocia

ted

tran

smiss

ion

lines

from

CAR

- C

amer

oon

2.6

mill

ion

USD

1.5

mill

ion

USD

Fund

ing

for s

tudi

es o

btai

ned:

BDE

AC /

to b

e pa

id u

pon

signa

ture

of i

nter

-go

vern

men

tal a

gree

men

t / w

orks

to st

art 1

st Q

TR 2

015

6Ca

mer

oon

(Mem

ve'e

le) -

Gab

on -

Eq. G

uine

a in

terc

onne

ction

s1

mill

ion

USD

150

mill

ion

USD

"Mix

ed c

omm

issio

n Ga

bon-

Eq. G

uine

a se

t up

Feb

2014

Aw

aitin

g in

volv

emen

t of C

amer

oon"

7Ga

bon

(Gra

nd P

ouba

ra) -

Con

go in

terc

onne

ction

s1

mill

ion

USD

150

mill

ion

USD

Cost

s men

tione

d he

re a

re e

stim

ates

bas

ed o

n re

fere

nce

cost

s

8Ch

olle

t hyd

ro p

ower

plan

t and

tran

smiss

ion

lines

to C

ongo

and

Cam

eroo

n2

mill

ion

USD

1.1

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R E P S P

Central Africa Power Pool

Regional Energy Policy

Strategy Paper

InnovationEnergieDéveloppement


Central Africa Power Pool Secrétariat Permanent, Avenue Amiral Cabral-TOUR NABEMBA 14eme étage/A B.P.: 1040, Brazzaville – RC Tél.: (+242) 05 556 67 95 / 01 802 02 02/ 05 664 04 04 Email: [email protected] / [email protected] Internet : www.peac-ac.org

This report was funded by the European Union.


REPSP - PEAC _ Eng.pdfDSPER anglais_JC.indd 1 04/11/2015 16:21 AC Central Africa Power Pool Regional...

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Transcript of REPSP - PEAC _ Eng.pdfDSPER anglais_JC.indd 1 04/11/2015 16:21 AC Central Africa Power Pool Regional...